ESTIMATED TOBACCO IMPACT ON THE PRIVATE SECTOR
FDA would impose a number of private-sector mandates, as defined in UMRA, on companies that manufacture or import tobacco products. CBO estimates that the total direct cost of these mandates would exceed the threshold established by UMRA ($139 million in 2009, adjusted annually for inflation) in each year, beginning with 2010.
The bill would assess a fee on manufacturers and importers of tobacco products to cover the cost to FDA of regulating those products. The aggregate payments would sum to $235 million in 2010, and rise to more than $500 million a year by 2013. The bill would impose new requirements related to the labeling and advertising of cigarette and smokeless tobacco products. New warnings on packaging and 13 advertisements would have to be larger, and, in the case of cigarette warning labels, include pictorial graphics.
The bill would also prohibit cigarettes or any of their component parts from containing certain additives or flavors (other than tobacco or menthol) that are a characterizing flavor of the tobacco product or tobacco smoke. CBO has not been able to determine whether the direct cost of these provisions would be significant.
The bill would assess a fee on manufacturers and importers of tobacco products to cover the cost to FDA of regulating those products. The aggregate payments would sum to $235 million in 2010, and rise to more than $500 million a year by 2013. The bill would impose new requirements related to the labeling and advertising of cigarette and smokeless tobacco products. New warnings on packaging and 13 advertisements would have to be larger, and, in the case of cigarette warning labels, include pictorial graphics.
The bill would also prohibit cigarettes or any of their component parts from containing certain additives or flavors (other than tobacco or menthol) that are a characterizing flavor of the tobacco product or tobacco smoke. CBO has not been able to determine whether the direct cost of these provisions would be significant.
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