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May 2016 Newsletter

XIKAR NATION
May 2016
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Kurt's Corner
 

     We in the cigar trade have finally received the FDA’s ruling of regulations it “deems” to impose on the premium cigar and other tobacco trades.  Unfortunately, these new regulations will make it extremely difficult and expensive to innovate cigars (up to $300,000 and three years to introduce each size of each blend).  To add insult to injury, the FDA has grandfathered only those brands / cigars in existence for sale before February 2007, when Congress gave them the right to regulate tobacco.  Thus, all of the innovations in cigar blends and brands that you have enjoyed since February 2007 will simply cease to exist by June 2018. By some estimates, this includes up to 50% of the cigars in the typical cigar shop humidor.
    Yet we hold out hope!  A Bill to exempt premium cigars, H.R 662, has passed the House Appropriations Committee, and now goes to the whole house for vote.  A similar bill exits in the Senate: S. 441.  How can you help? Go to www.cigarrights.org. Sign the petition. And take “Action” with your Congressman and Senator via the “Action Alert” banner at the top.  Your favorite pastime needs you, NOW!

Kurt Van Keppel
President, XIKAR Inc.

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