CIGARRIGHTSOFAMERICA

AnOpenLetter…RegardingPremiumCigars

DearMr.Trump,SecretaryClinton,andGovernorJohnson:

29–That’sthemagicnumber.

That’s thenumberof electoral votes representedbyFlorida, and thepath to ‘29’ iswith theapproximate11,939,889registeredvotersintheSunshineState.

Ourmessageissimple.InlightoftheplannedeffortbytheU.S.Food&DrugAdministrationtoregulatecigars,youneedtobe talking toour industry– thepremiumcigar industry.WeareFlorida...andafewotherplacesyouneed,aswell.

WewantyoutounderstandtheimplicationsfortheplannedFDAregulationofpremiumhandmade cigars. On May10,2016,FDAissuedtheirFinalRulefor bringingourproductsundertheirregulatorydomain.FDA’sFinalRulecallsforthemtoapproveeachblendbeforeitisallowedtogotomarket;Theyaregoingtobanfreesamplesforadultpatronsofpremiumcigars;Theyaregoingtoimplementnewuserfeestofinancetheirbureaucraticempire;Theyaregoingtorequireunjustifiedwarninglabelsthatarenotbaseduponsoundscience.Simplyput,theywantcontrol.

Florida is the epicenter of the premium cigar industry. There are over fifty corporateheadquarters locationsspanning from Fort Lauderdale, to Miami, and up to Tampa. Everypremium cigar that enters the United States from Latin America enters through the Port ofMiami, and the Ports of Tampa and Fort Lauderdale also represent critical pieces ofinfrastructurefortheindustry.Theheadquartersandlogisticschannelsthatincludetrucking,warehouse and distribution firms are foundations of the regional economy inMiami-DadeCounty,andalongtheI-95corridoruptoFortLauderdale.

But the story is deeper than that. The premium cigar industry is an engrained part of theFlorida historic and cultural fabric. This is personified by the National Historic District thatblanketsYborCity.ThroughthemachineryoperatedbyemployeesatthelastcigarfactoryinAmericaunder the J.C.NewmanCigarCompany,or thecenturyoldA.FuenteCigarCompanyheadquarters,or the small singleproprietorcigarshops thatareblendingcigarson theverytableinfrontofyouon7thAvenue,it’sallapartofthiscommunityingreaterTampa.

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ThisiswhyTampaMayorBobBuckhornhascalledforafederaleconomicimpactanalysisofregulationsonhiscommunityandnotedhisconcernstotheWhiteHouse,SecretaryofHealth&HumanServicesandtheFDA.ThatiswhythePortofTampa,YborCityChamberofCommerceandtheGreaterTampaChamberofCommercehaveraisedthesameconcerns.ThesameholdstrueintheLittleHavanacommunityofMiami.Premiumhandmadecigarsareintricatewith thesmallbusinessandculturalhistoryof thisneighborhoodthathasboutiquecigarmakersproducingsomeofthegreatestcigarsintheworld.SandyCobasownsElTitanDeBronzecigarcompanyinMiami.Herrecentlyexpandedbusinessisworkingtokeepupwithdemandforheracclaimedcigars.Shehasbrought innewrollers,knockeddownwalls,storesandimportshertobaccofromLatinAmerica,andisalwaysafocalpointfortouristsandcigarenthusiastsfromaroundthenation,andindeedtheworld.Sandyismakingcigars forSeanWilliamsofElPrimerMundoCigarCompany,oneof theonlyAfricanAmericanownedcigarbrands in thenation. SandyandSeancouldnot sustain federalregulation.JustupthestreetisCubanCrafters,anditis‘allthingscigars.’Truecraftsmanofcigars,rollingforlocalsandtouristsalike,adornthewindowwherecigarscomealivethroughthehandsofthosewhoknow this ancient skill.Residents sit about enjoying their cigarswhile sippingonCuban coffee and enjoying a rousing gameof dominos. The cigars bring them together. Andagain, just up the road, is Padron Cigars, as an iconic family owned business that recentlycelebrated their 50th anniversary. It’s about family, tradition, and skill – not about abstractcontroloperatingfromarulebookcallingforfederalintervention.Within theLittleHavana communityon any givenday, youmay also seeYvonne andYvetteRodriguez,Afro---CubantwinsistersthathavelaunchedTresLindasCubanasCigars,notingthattheyareabridgeforconversationonracerelations,overcigars.Yvonne,YvettenortherollersatCubanCrafterscouldsustainfederalregulation.TheU.S. Small BusinessAdministration has also gone on record as to the adverse economicconsequencesof theproposedregulations,andtheir fearsarenoted inanattachmentto thisletter.ThisiswhyMiamiMayorTomasRegaladohascalledforafederaleconomicimpactanalysisofregulationsonhiscommunity,aswell,andnotedhisconcernstotheWhiteHouse,SecretaryofHealth&HumanServicesandtheFDA.TheOfficeofGovernorandAttorneyGeneralofFloridahavealsovoicedtheirconcernsformallyandpublicly.TheFDAhasacknowledgedthatthereareinternationaltradeimplicationstoregulatingcigars,but is anyone listening to theLatinAmericandelegation to theUnitedStates?The collectiveAmbassadorstotheUnitedStatesfromHonduras,NicaraguaandtheDominicanRepublichavevoicedtheirconcernson the threat theseregulationspose toover300,000 jobsamong theirthreenations,andtheadversepoliticalandeconomicimpacttheywouldhave,inthissensitiveandstrategicregion.

Wealsohavetoaskourselves,whythegovernmentoftheUnitedStateswouldthreatenoneofthestablesourcesofemploymentwithinthisregion,whichgoestotheheartofthedebateonissuessuchasbordersecurityandimmigration?TheHonorableJorgeAlbertoMillaReyes,AmbassadortotheUnitedStatesforHondurasnoted,“There are, indeed, international trade and economic implications with regulating premiumcigarsfromHondurasandthroughoutLatinAmerica.ThegovernmentofHondurasvaluestheinvestmentandsourceofemploymentprovidedbythepremiumcigarindustry,andknowswellhow it provides for over 35,000 families in Honduras and over 300,000 in the region. Wecannotunderestimatehowthiscontributestostability,especiallyatthistimeofconcernoverissuessuchasimmigrationandsecurity.”EachofthesenationshavevoicedtheseconcernstotheStateDepartment,Health&HumanServices,FDA,andtheNationalSecurityCouncil.But this election is about thenation, so let’s adda fewothernotes onwhatpremiumcigarsmeaninotherpartsofthecountry.OneofthelastregionstoproduceacclaimedcigargradetobaccoistheConnecticutRiverValley.Over100familyfarmsproducesomeofthemostprizedtobaccoindemandwithintheindustry.TheConnecticutFarmBureau,Connecticut---MassachusettsTobaccoGrowersAssociationandU.S. Congressman Joe Courtney has written demanding an economic impact analysis of theproposedregulationsonthefarmingcommunityspanningthisvalley.Up to 50%of the cigars in this nation aredistributed through theCommonwealth ofPennsylvania.MajordistributionfacilitiesdottheLehighValley,andPennsylvaniaBroadleafisgrown for cigars inLancasterCounty.Oneof thenation’soldest cigar shops is indowntownPhiladelphia,havinggrownintoamajornationalandinternationalbrand,Holt’sCigarCompanyandAshtonDistributors,shouldbeastoponyourcampaigntrail.TheindustryholdsnationaltradeexhibitionsinNevadaandLouisiana,whichwouldbethreatenedunderthisproposedregulatorymodel.SowebringtoyourattentionthesupportforourcausefromtheMayorofLasVegas,theNevadaRetailAssociation,LasVegasConvention&Visitors Authority and Las Vegas Chamber of Commerce.We highlight The Cigar Factory indowntownNewOrleans, thatproducesoutstandingcigarsfor localsandtourists,ontheverytablesinfrontofyou–andtheycouldnotsustainregulation,inthiseconomicallyfragilecity.TheproposedFDAbanonfreesamplesofpremiumcigarsforadults,isadefactobanoncigareventsacrossthenation.InadditiontomajornationalcigareventsforadultpatronsinPennsylvania,Florida,NewYorkandNevada,thereareahostofevents ineverystate,whichwouldsubsequentlybebanned.Thatimpactstourismandthehospitalitysector,muchlessthepremiumcigarindustry.Inaddition,cigarsareaprimesourceofrevenueforthestatesintheformofthe‘OtherTobaccoProducts’tax.Therefore,ourorganizationhasnotifiedallfiftygovernorsofthepotentialadverse impact these regulations can have on projected tax collections, should the FDA besuccessfulindrivingdownimportsandsales.Whichbringsupanotherfacetoftheeconomicimpactoftheseregulations---Everystateintheunionhasahostofprofessionalcommunitytobacconists,forwhichthesaleofpremiumhandmade cigars are over 75% of their annual revenue. Many of these establishments arefamilyownedandoperated,orsoleproprietorshipsownedbylocalentrepreneurs.

Withover2,000ofsuchsmallbusinessesdottingMainStreetAmerica,theimplications,asyoucansee,aremorevastthanonewouldhaveprobablythought.

Congress is also speaking out on this issue. Even as the pace of the legislative process hasvirtually ground to a halt, one cannot ignore the statement being made when through thecourseof the112th,113thand114thsessionsofCongress,292differentmembersof theU.S.HouseofRepresentativeshavesignedontoH.R.1639,H.R.792orH.R.662,eachofwhichcalledforan exemptionfromsuchregulationsforpremiumcigars.LikewiseintheU.S.Senate,whereduring thecourseofthesethreesessionsofCongress,26membersoftheSenatehavesignedontoS.1461,S.772,orS.441,asthecompanionbillalsocallingforexemptionfromregulation.

The members hail from 44 states, 72 of which voted for the original Family SmokingPreventionandTobaccoControlAct,noting thatCongressexplicitly told theFDA to regulatecertainproducts,andneverspecificallycalledforaregulationofcigars.Theco-sponsorsofthislegislationrepresentallendsofthephilosophicalandpoliticalspectrum,andastotheFloridaposition,twentysixcurrentorformermembersoftheU.S.HouseofRepresentativeshaveco-sponsoredpremium cigar exemption legislation. It is not insignificant that fifteen current orformermembersofCongressfromPennsylvaniahavealsotakensuchaction.

Florida,Pennsylvania,Connecticut,Nevada,Louisiana…coupledwithconsumersandshops ineverystate.Wehaveanetworkandconstituencyworthyofyourtimeandattention.

We’veneverhad to reachout like this to candidates like you.Thenagain,we’venever beenthreatenedlikethis,duringanyPresidentialcyclesincethedaysofWashington,JeffersonandMadison.Notacandidateorvictorhaseveradvancedlawsorregulationsuponthisindustry,asinthismomentinhistory.

Butmakenomistake.Wewilleducate,andwewilllisten.Then,wewillvote.

Youcanreachmeat1.202.469.3444orglynn.loope@cigarrights.org

Thankyouforyourconsideration,andwelookforwardtohearingfromyou.J.GlynnLoope,ExecutiveDirectorCigarRightsofAmerica

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