2009 SCHIP Bill Introduced in Congress

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HR2 Looks to Move Smoothly Through House, Slower in Senate

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[humbertothehorrible]

Here's the actual bill... in all its glory.

http://frwebgate.access.gpo.gov/cgi-...f:h2ih.txt.pdf

Reading the whole thing will make your head spin. If you want the nitty gritty on how it affects cigar pricing, go to section 701 on page #271.

This is a change in the import tax. It used to be 20.719% of the import price with a cap of $48.75 per thousand (approx 5 cents a cigar) and has been changed to 52.4% with a cap of 40 cents a cigar ($400 per thousand!!). In short, we (industry importers), can expect an increase of 35 cents per cigar when it arrives at port.

Truthfully, it may not affect the premium cigar business too drastically but the bundle and little cigar (Mac Ascots, Agio, and just about anything in a small pack or tin) businesses will be devastated after April 1st.

Once again, if it's cheap cigars or tins you want, buy them now and buy plenty.

I'll also add that this bill has not been passed by the house yet. They're voting on it tomorrow and is expected to pass quickly with little or no change. I hear the senate may take longer.

Humberto

[heavyd]

Originally Posted by humbertothehorrible

Here's the actual bill... in all its glory.

http://frwebgate.access.gpo.gov/cgi-...f:h2ih.txt.pdf

Reading the whole thing will make your head spin. If you want the nitty gritty on how it affects cigar pricing, go to section 701 on page #271.

This is a change in the import tax. It used to be 20.719% of the import price with a cap of $48.75 per thousand (approx 5 cents a cigar) and has been changed to 52.4% with a cap of 40 cents a cigar ($400 per thousand!!). In short, we (industry importers), can expect an increase of 35 cents per cigar when it arrives at port.

Truthfully, it may not affect the premium cigar business too drastically but the bundle and little cigar (Mac Ascots, Agio, and just about anything in a small pack or tin) businesses will be devastated after April 1st.

Once again, if it's cheap cigars or tins you want, buy them now and buy plenty.

I'll also add that this bill has not been passed by the house yet. They're voting on it tomorrow and is expected to pass quickly with little or no change. I hear the senate may take longer.

Humberto

Thank you for the synopsis, Humberto. Very helpful .
Does this mean the Petite Tatuaje will skyrocket in price but the other larger Tats will see only a slight increase? It will seem odd to see a fiver of petite's and a fiver of Noellas going for the same price . Maybe companies will just stop making small stogies...

[humbertothehorrible]

Originally Posted by heavyd

Thank you for the synopsis, Humberto. Very helpful .
Does this mean the Petite Tatuaje will skyrocket in price but the other larger Tats will see only a slight increase? It will seem odd to see a fiver of petite's and a fiver of Noellas going for the same price . Maybe companies will just stop making small stogies...

The bill's definition of 'small cigars' is anything that weighs less than 3 lbs net per thousand (Essentially cigarillos and the like.). Coronas are safe.

[heavyd]

Originally Posted by humbertothehorrible

Coronas are safe.

Understood. But the Petite Tatuaje's (small cigar, approximately the size of Ascots) would have the higher "small cigar" tax, which would bring their price closer to the larger Noella.

It seems this tax will have less effect on expensive "super" premiums like Opus X than it will on a $2 premium smoke like a La Aurora robusto..

[humbertothehorrible]

Originally Posted by heavyd

Understood. But the Petite Tatuaje's (small cigar, approximately the size of Ascots) would have the higher "small cigar" tax, which would bring their price closer to the larger Noella.

It seems this tax will have less effect on expensive "super" premiums like Opus X than it will on a $2 premium smoke like a La Aurora robusto..

This would be borderline, then. The determination is made on the factory invoice where the net weight or 'peso bruto' is itemized (required by US Customs). You'd have to contact Pete to find out what that is.