D.C. Justice Rules For Premium Cigars—Again
Looks like it’s another major legal victory for handmade cigars. Following a decade-long dispute between the premium cigar industry and the U.S. Food & Drug Administration, Judge Amit P. Mehta reaffirmed his 2023 decision that the FDA Deeming Rule will not apply to premium cigars as defined by the court. He’s once again ordered the FDA Deeming Rule to be vacated, which means that premium cigars are exempt from FDA regulation. Furthermore, the court is also upholding the same definition for premium cigars it previously held in this case, thereby rejecting the Cigar Association of America’s (CAA) motion last year to redefine the premium category.
“After years of litigation, this court in 2023 vacated the Deeming Rule as applied to a category of products known as ‘premium cigars,’” Mehta said in his ruling, which was handed down yesterday on behalf of the United States District Court for the District of Columbia.
“The D.C. Circuit affirmed this court’s vacatur of the Deeming Rule as it relates to ‘premium cigars.’ But the Circuit also ruled that this court should have sought the parties’ input before adopting a definition of the term…On remand, the court invited briefing as instructed. Having now considered the parties’ positions, the court adopts the same definition of ‘premium cigars’ it did before and enters this final order vacating the Deeming Rule as to cigar products covered by that definition.”
Mehta also reaffirmed the established definition of premium cigars—a definition that the CAA sought to modify and broaden last year by trying to classify flavored cigars and cigars made by machine (but finished by hand) as premium. The CAA’s failed motion to redefine premium cigars was opposed by the Cigar Rights of America and the Premium Cigar Association. Even though the cigar organizations are not aligned on this subject, the three are joint litigants in the larger fight against FDA regulation. Flavored and machine-made cigars are not exempt from FDA oversight.
Per Judge Mehta’s ruling, premium cigars are still defined as:
- wrapped in whole tobacco leaf
- containing a 100 percent leaf tobacco binder
- containing at least 50 percent (of the filler by weight) long filler tobacco (i.e., whole tobacco leaves that run the length of the cigar)
- handmade or hand rolled (i.e., no machinery was used apart from simple tools, such as scissors to cut the tobacco prior to rolling)
- having no filter, non-tobacco tip or non-tobacco mouthpiece
- not having any characterizing flavor other than tobacco
- containing only tobacco, water and vegetable gum with no other ingredients or additives weighing more than six pounds per 1,000 units
This ruling is yet another legal victory for the premium cigar industry in its battle to prevent the FDA from overseeing the sale and manufacturing process of handmade cigars. Last year, Judge Mehta shot down the FDA’s 2024 appeal to overturn his 2023 ruling in favor of the cigar industry.
So, what does yesterday’s decision amount to in practical terms? It means that cigarmakers won’t have to put warning labels on cigar packaging or deal with other draconian, costly regulations proposed by the FDA’s Deeming Rule, at least not for now. According to Mehta’s ruling, the FDA can still appeal. Drew Newman, fourth-generation owner of J.C. Newman Cigar Co. is cautiously optimistic.
“The parties could choose to appeal Judge Mehta’s decision, but I do not think that is likely to happen,” he says. “At any time, FDA could decide to start the process of trying to regulate premium cigars again and impose costly and burdensome requirements like graphic health warnings, product testing, premarket review and more fees. As an industry, we will have to continue to be vigilant to ensure that adults can continue to enjoy premium cigars in the decades ahead.”
Still, Newman is grateful for the decision, adding: “For more than a decade, the premium cigar industry has been living in purgatory while we challenged FDA’s decision to regulate premium cigars like cigarettes.”
Josh Habursky, CEO of the Premium Cigar Association agrees.
“After nearly a decade of litigation, this decision provides clarity for retailers, manufacturers and consumers who have had to operate under significant regulatory uncertainty,” he said in a press release. “Premium cigars clearly represent a distinct product category, and this outcome reflects the importance of considering those differences in any regulatory framework.”
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