In the cigar world, there’s been a lot of talk about the executive order that President Trump signed which freezes new Federal regulations. Initially, this sounded like good news for the premium cigar industry but as I researched further, I realized that there is basically no impact. I put together a brief Q&A and provide links if you want more details.
Should I keep reading this or should I go have a cigar?
I recommend having a cigar. But if you are curious you could read over this while you smoke.
What does this mean?
The executive order prohibits federal agencies, including the FDA who is responsible for regulating cigars, from issuing any new regulations until such regulations have been reviewed by the newly appointed head of agency. For regulations which have been published but have not taken effect, the executive order results in a 60 day delay.
How does this impact the FDA’s regulation of cigars?
The impact is minimal. The current regulations impacting cigars went into effect on August 8, 2016 and are therefore outside the scope of this executive order.
This particular executive order also covers guidance documents, which are formal clarifications of a rule issued by the executive agency. In the past few months, the FDA has published numerous guidance documents to help clarify parts of the deeming rules, including announcing delays to certain deadlines.
Is this executive order really a big deal?
Not at all. This is a fairly common move for a new administration. President Obama did the same thing when he took office. The freeze is likely temporary.
Where does the cigar industry stand?
The cigar industry is in the same place it was before the executive order was issued. We are all anxiously awaiting the appeal of the ban on Cuban cigars.