Tobacco Fees and Charges for Mandatory Inspection

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The Tobacco Inspection Act requires the Secretary to fix and collect fees and charges for inspection and certification, the establishment of standards, and other services, including administrative and supervisory costs, at designated tobacco auction markets in all tobacco producing areas. The fees collected must, as nearly as possible, cover the Department's costs of performing these services and also maintain a reserve sufficient to cover at least 4 months of operation. The present fee of $.0070 per pound has been in effect since July 11, 1991, and is no longer sufficient to recover the costs of operating this activity. This final rule increases the fee to $.0083 per pound to reflect increased program costs and replenish the operating reserve. This increase does not affect the fees for import, export, or permissive inspection.