Washington Lawyer about FDA and Pact Act

[tom502]

But, then how come in Canada, they(customs) hold the package and make the buyer pay up before they can get it?

[Snusdog]

But, then how come in Canada, they(customs) hold the package and make the buyer pay up before they can get it?

Because that is what Canadian law requires

However, that is not (nor has it been) what USA law requires.

As of today, there has been no change to US law in that regard

[fedora]

Thanks dog for clarifying. Question: Date all this goes into effect? Meaning when will Northerner not be able to ship USPS? Thanks!

[fedora]

Oh - and does anyone have a clue as to what the UPS costs are going to be for the slowest shipment? Comparable to current costs?

[Snusdog]

The law takes effect June 22 (I think that is the right date-- it may be the 29th) However, it is not clear when the postal restrictions will be set in place or even certain what they will be-- (though I don't think there is much hope for a reprieve given the preliminary postal report). The Postmaster General has 180 days to make a final report to congress. When His suggestions are implemented is beyond me.

Given all that.............. I would just set the June date as the cutoff and play in behind it to be safe.

As far a shipping increases..................there really should not be any (it will cost them no more in operational cost post Pact than it does now). My concern is that UPS might try to tack on Brokerage fees and bill us after the delivery (Brokerage Fees are what they charge you to supposedly expedite your package through customs)

If they do I will promptly not pay them

[danielan]

There are 2 different things as I understand:

1. June 22 = No more swag + FDA ingredient listing + different labels
2. June 29 = PACT = Tax changes, no USPS shipping, etc.

[TBD]

Shipping costs inside the US will not change. UPS shipping from Sweden is awful. I once ordered two rolls and a few singles and the UPS charge was $40. It was $11 USPS.

The big thing to watch with UPS deliveries is the record keeping requirements. Since we will now have to sign and UPS will be turning the shipping records over the days of slipping past without paying the taxes are effectively over. Now the question is what level is it worth the State coming after you for taxes. In Ohio the tax is 17% of the wholesale cost. So $17 on a $100 order. I'm thinking it would take a few of those before spending the time hunting me down would be profitable.
On the other hand my buddy who buys 8 cartons of smokes a month.....at a $1.85 per pack tax rate......

Thanks for posting this. I hate the idea of paying all the taxes, but a bit higher prices is a small price to pay to keep my snus. Although I'd be singing a different tune if I lived in Cali, or Michigan, or some other place with stupid high tobacco taxes.

[Snusdog]

It seems that record keeping will also be confined to interstate sales only.


When it all boils down..............I am just not sure what scenario remains in which ordering from a domestic site will pay off.

1. limited supply
2. your name on a government list
3. the added expense of state tax collection*

{*Note: I am certain that we all already report and pay the taxes due on our purchases as required by law. So I am not suggesting that anyone will take advantage of a foreign sale to avoid the new taxes. My point is that domestic sales will include the added expense and effort of the seller now having to collect, record, and pay each state its tax for each sale made.............an expense that will understandably be passed on to the customer thereby raising prices}

My concern has always been that our foreign merchants would overreact to PACT and needlessly limit US customers to US based sites (a move that I think would be to everyones loss, vendors and buyers alike). Keep both options open. However, I still maintain that the way through the Pact mess will be less frequent but larger orders made on foreign sites.

[tom502]

If one did continue to order from Sweden, and did want to pay their state taxes, is this done when one does their yearly taxes? Would one have to add it all up themselves based on their states tobacco tax? I can't see people actually doing all that.

[WickedKitchen]

Word, Dog.

My Northerner shopping cart is now over two bills.

[rickcharles606]

If one did continue to order from Sweden, and did want to pay their state taxes, is this done when one does their yearly taxes? Would one have to add it all up themselves based on their states tobacco tax? I can't see people actually doing all that.

Most states that I've talked to want the tobacco taxes paid on a monthly basis. They also have the return forms on their website, Kentucky is one of those states.
As for sales tax, it can be paid quarterly, but I suggest calling the KY dept. of revenue to ask them.

[danielan]

Is there any rule of thumb to determine the wholesale cost of snus? Since that is what taxes are often paid on.

I'd guess 50% of retail, but I don't really want to be off by a significant margin in their favor or mine.

[LaZeR]

...Thus Laz Skruff will be readily available at a bit higher shipping cost. No more. No less

I sure hope you are right. Otherwise, I'm goin to be single again and back to dippin Copenhagen w/ fiberglass init.

[tom502]

I did read Skruf is going to make their portions lighter, maybe they could use fiberglass to bring them up to 1 gram.

[bipolarbear1968]

I sure hope you are right. Otherwise, I'm goin to be single again and back to dippin Copenhagen w/ fiberglass init

I hope Snusdog is right too or he might join you