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. This proposed rule would increase the fee from $.0070 to $.0083 per pound to cover the increased cost of operating the tobacco inspection program and replenish the operating reserve. The last increase in the fee was in 1991.