Tax Guide for Cigarettes and Tobacco Products
Manufacturer & Importer

Manufacturer

A manufacturer is a person who manufactures cigarettes and/or tobacco products sold in California (Business and Professions Code section 22971(l)). There are some reporting requirements imposed on manufacturers and there are additional restrictions which carry potential tax consequences regarding product promotions and samples provided to recipients at no cost, as set forth in Regulation 4081.

A tobacco product manufacturer (Regulation 4077) is:

  • Any person, including any repacker or relabeler, who manufactures, fabricates, assembles, mixes, blends, combines, processes, or labels a finished tobacco product.
  • An owner of a brand or formula for a tobacco product who contracts with another person to complete the fabrication and assembly of the product to the brand or formula owner's standard.
  • A retailer who mixes, blends, or combines a tobacco product that is not suitable for human consumption, such as liquid nicotine, with other ingredients or components to make a tobacco product that is suitable for human consumption. For more information about a retailer who is also a tobacco product manufacturer, see our Retailer & Wholesaler section.

Importer

An importer is any purchaser who purchases for resale in the United States cigarettes and/or tobacco products manufactured outside the United States for the purpose of making a first sale or distribution within the United States (Revenue and Taxation Code section 30019).

Responsibilities

As a manufacturer or importer of cigarettes and tobacco products, you must:

  • Obtain a Seller's Permit.
  • Maintain a valid Cigarette and/or Tobacco Products Manufacturer/Importer's License.
  • Submit to CDTFA a list of all brand families that you manufacture or import.
  • Update the list of brand families that you manufacture or import whenever you manufacture or import a new brand or additional brand, or stop manufacturing or importing a listed brand.
  • Consent to the jurisdiction of the California courts for the purpose of enforcing the Cigarette and Tobacco Products Licensing Act of 2003, appoint a registered agent for service of process in this state, and identify that agent to CDTFA.
  • Certify when the license is granted and each year upon license renewal that all packages of cigarettes the licensee manufactures or imports and distributes in this state fully comply with subdivision (b) of the Revenue and Taxation Code section 30163, and that the cigarettes contained in those packages are the subject of filed reports that fully comply with all requirements of the federal Cigarette Labeling and Advertising Act (15 U.S.C. Sec. 1331-1340; 21 U.S.C. Sec. 387c) for the reporting of ingredients added to cigarettes.
  • A cigarette manufacturer or importer must waive any sovereign immunity defense or post a surety bond as provided in the Business and Professions Code section 22979(a)(4).
  • A manufacturer or importer that is a “tobacco product manufacturer” as defined in Health and Safety Code section 104556, subdivision (i), selling cigarettes to consumers within the state, must certify to CDTFA that it is a “participating manufacturer” as defined in subsection II(jj) of the ”Master Settlement Agreement“ (MSA), or is in full compliance with paragraph (2) of subdivision (a) of the Health and Safety Code Section 104557.
  • In accordance with the Business and Professions Code section 22979.2(c), all California cigarette manufacturers and importers are required to comply with a one-time license administration fee. The fee amount charged shall correspond with your respective market share of cigarettes manufactured or imported and sold in this state during the next calendar year as estimated by CDTFA.
  • In accordance with the Business and Professions Code section 22979.23(a), all California manufacturers or importers of chewing tobacco or snuff must submit a one-time license fee.
  • In accordance with the Business and Professions Code section 22979.23(b), all California manufacturers or importers of tobacco products, excluding chewing tobacco or snuff, must submit a one-time license fee.
  • Make sure your sales invoices meet all legal requirements (Business and Professions Code section 22979.5). Each sales invoice must be legible and include the following information:
    • Your name, address, and telephone number.
    • Your cigarette and tobacco products manufacturer license number or your cigarette and tobacco products importer license number.
    • The name, address, and cigarette and tobacco products license number of the business purchasing the cigarettes or tobacco products. You may not legally sell cigarettes or tobacco products to an unlicensed buyer.
    • An itemized listing of the cigarettes or tobacco products sold.
    • If you are an original importer that is also a distributor and only if you are using your cigarette and tobacco products importer license to sell cigarettes or tobacco products to another distributor, you should include a statement on your sales invoice that identifies any cigarettes or tobacco products sold without tax under Revenue and Taxation Code section 30105.
  • File tax returns and reports. See Filing, Payments, and Account Maintenance in the Getting Started section for more information.