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In 2007, over $2.5 million worth of tobacco products were imported into the United States—about as much as was exported from the United States into other countries—offering ample business opportunity for those with tobacco importers and exporters education and training. And truly, education is required in this competitive field, which is fraught with red tape and taxes.
There are a number of ways to learn the essentials of exporting or importing tobacco. Aside from studying as an intern, consider all of these options before plunging into the trade:
1. Take a class for tobacco exporters and importers.
2. Obtain accreditation to export or import tobacco.
3. Learn the business of global tobacco importers and exporters through self-study.
Action Steps
The best contacts and resources to help you get it done
Attend classes to learn the tobacco trade
Whether you want to import or export tobacco, there are many classes to teach you what you must know. Colleges often offer business courses in importing and exporting, which will at least touch upon the tobacco business. There are also virtual courses, as well as workshops that travel around the country--some of them specific to the tobacco trade.
I recommend: Acteva allows for virtual booking of import and export classes, designed to give you all the basics of this important business. World Tobacco has lists of essential educational trade shows specifically for importers and exporters of tobacco.
Obtain accreditation in tobacco imports or exports
Some business schools offer accreditation in the import and export business. Many of these cover tobacco exports and imports, and any good accreditation course should teach you most of what you need to know to be successful in the tobacco trade.
I recommend: Export Institute USA offers a certification program for all kinds of exporting, including tobacco, as does International Import-Export Institute. The World Academy offers continuing education to those already in the import/export business.
Use self-study to learn about being a tobacco importer or exporter
Self-study is an excellent way to learn whether you really wish to run a tobacco import company or export company. It's also essential to keeping up to date once you're in the tobacco trade. Self-study should include reading books and periodicals on the topics of tobacco and importing and exporting, and exploring government and trade websites.
I recommend: TTB offers a wealth of necessary information about governmental regulations regarding the import of tobacco into the United States. The Tobacco Merchants Association (TMA) provides up-to-the-minute information for members; after becoming a member, click on "Browse Topics" in the left-hand menu, and then select "International Trade" for details.
Tips & Tactics
Helpful advice for making the most of this Guide
- • Tobacco importers and exporters must stay current with government regulations both in the country they work in and the country they are exporting to or importing from. Regularly check government websites or booklets for changes.
Just as many businesses rely on trade, tobacco importers and exporters are no different. These companies tap into an international goldmine while capitalizing on an ever-growing market of sending tobacco overseas and receiving products for purchasing within the United States.
When you're dealing with tobacco importers and exporters, there are laws and regulations you need to adhere to, and you need to produce a quality product. Similarly, tobacco can be a highly-perishable product if not stored correctly. When dealing with tobacco exporters and importers, consider the following:
1. Know the rules and restrictions if you want to import or export tobacco.
2. Keep connected with tobacco importers and exporters.
3. Contact tobacco conglomerates to see about tobacco imports and exports.
Action Steps
The best contacts and resources to help you get it done
Stay current with rules and restrictions on tobacco exports and imports
Although you don't need a federal license to sell tobacco, you must keep federal records if you sell more than 100,000 cigarettes per month. There are also rules and requirements that can impact the sales of tobacco products, which you should become familiar with before you become a seller. If you intend to manufacture tobacco products, you must receive approval from the Alcohol and Tobacco Tax and Trade Bureau (TTB).
I recommend: The TTB provides information on its site for obtaining a permit to become a tobacco importer. You can also peruse its site to answer any questions you may have about becoming a tobacco exporter or importer. Because tobacco is a health issue, the Centers for Disease Control and Prevention has its own mandates you need to follow.
Search through companies to find the tobacco importer or exporter that works best for you
With so many selections to choose from, it's best to know what needs you have before you scour through Internet listings for tobacco importers and exporters. If you need many tobacco items quickly, determine if the company you're looking into can do that for you at a cost you can afford.
I recommend: Global Buyers Online provides a list of tobacco importers where you can search through according to needs or country. Gulf Business is a Middle Eastern business where you can find tobacco exporters. TradeKey.com is another choice where you can browse through needs of sellers and buyers. For an online marketplace that lists tobacco trade companies, check out Tradeget.
Confer with global tobacco importers to see if they can help your business
It may be intimidating to contact large conglomerates that deal daily with tobacco manufacturing, but these companies are a wealth of knowledge. They know the ins and outs of importing and exporting tobacco. Contact them via email or telephone to request more information.
I recommend: Philip Morris USA is one of the top-ranked tobacco companies in the world. In business for more than 150 years, it's the largest cigarette manufacturer in the country. Imperial Tobacco Canada, which is Canada's leading tobacco company, contains a list of its products. It cannot show the logos, as it's a violation of the country's advertising laws.
Tips & Tactics
Helpful advice for making the most of this Guide
- • Keep in mind taxes and duties that may be declared if you export or import tobacco. Check with each country to determine how much money should be added to the cost, and factor that into your budget.
Tobacco importers and exporters allow shoppers to have a larger section of tobacco products to choose from. Tobacco importers bring tobacco from other countries to the United States in order to give customers a more global and varied selection. Tobacco importers and exporters often use terms and acronyms that may confuse a new buyer. Whether your company is a distributor or retailer of tobacco products, familiarizing yourself with these key terms allows you to find the tobacco products you need.
Action Steps
The best contacts and resources to help you get it done
TTB
TTB stands for the Alcohol and Tobacco Tax and Trade Bureau. The TTB oversees the compliance of alcohol and tobacco importers and exporters with federal regulations. This includes the enforcement of such laws as compliance with labeling, advertising and marketing laws.
I recommend: The Alcohol and Tobacco Tax and Trade Bureau has more information about the TTB and its authority.
FCLAA
FCLAA stands for the Federal Cigarette Labeling and Advertising Act. This act requires manufacturers and importers of tobacco to submit a list of ingredients and other pertinent information to the U.S. Department of Health and Human Services.
I recommend: Find out more about the FCLAA at the Centers for Disease Control and Prevention.
Tobacco beedi
A tobacco beedi, or bidi, is a small, thin, flavored Indian cigarette. Beedis are rolled with tendu leaves.
I recommend: Learn more about the tobacco beedi industry at V Lex. The Morbidity and Mortality Weekly Report has more information about bidis.
Nasal snuff
Nasal snuff is an extremely fine snuff that is inserted into the nostrils, unlike regular snuff that is placed on the lip. Nasal snuff comes in an array of flavors.
I recommend: Learn more about nasal snuff and how it is made at Dholakia Tobacco.
Hookah tobacco
Hookah tobacco is a type of tobacco that is smoked in a water pipe. A hookah pipe has a tube attached to the pipe where the smoker smokes the hookah. Hookah tobacco originated in India, where it has grown in popularity.
I recommend: Learn more about hookah tobacco and hookah bars at Common Ground News Service. Colors of India also has information about hookah, as well as a brief history of the tobacco and pipes.
Aromatic fire-cured tobacco
Aromatic fire-cured tobacco is a type of smoking tobacco used in pipes that has been slowly cured over a fire. Aromatic fire-cured tobacco has a strong, rich flavor.
I recommend: Tobacco-Cigars has more information about aromatic fire-cured tobacco.
The tobacco trade has always been involved in one of the most controversial crops due to many legislatives actions to limit its use. These legislative actions extend into the tobacco importers and exporters laws and regulations. That's why if you want to enter the industry or improve your current tobacco business, it's imperative that you understand these laws and regulations and who enforces them.
You have a few options when it comes to tobacco importers and exporters laws and regulations; you can examine the information on your own, hire your lawyer to help or contract out to an outside law firm. Each of these options has its own merits. However, it'll depend on your budget and just how much tobacco trade your company conducts as to which option is best. No matter what the case is, below are several items to consider before making a choice:
1. Review the agencies in charge of regulating tobacco exports and imports.
2. Contact an association familiar with exporting and importing tobacco.
3. Hire a law firm that specializes in import and export tobacco laws and regulations.
Action Steps
The best contacts and resources to help you get it done
Examine the governmental entities responsible for export and import tobacco legislation
The two primary organizations responsible for tobacco legislation are the Alcohol and Tobacco Tax and Bureau and the U.S. Food and Drug Administration. However, for anyone thinking of starting a tobacco import company or one that exports needs to study these regulations very closely.
I recommend: Assess the scope and purpose of the Alcohol and Tobacco Tax and Trade Bureau, Review the U.S. Food and Drug Administration organizational profile.
Speak to a tobacco association or organization for tobacco trade assistance
The national tobacco organizations are an excellent resource for information on laws and regulations for a tobacco export company. They have decades of experience with all types of rules and regulations and can offer recommendations for veterans or newcomers to the industry.
I recommend: Evaluate the resources available at Tobacco.org. Talk to a representative at the Tobacco Merchants Association for more information.
Employ an attorney or firm that specializes in tobacco exporters and importers
Any tobacco exporter or importer that wants to compete needs a law firm that is specific to the industry. Most of these law firms know all the laws and regulations and don't require any time-consuming research on your part. They take care of the legal headaches as you run the business.
I recommend: Assess the legal resumes of the law firms Dilworth Paxson and Becker & Poliakoff. You may want to hire a local firm and the local Bar Association can make a recommendation if that's the case.
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