October 2, 2025

Dear CART followers,

The deadline is quickly approaching for manufacturers and importers to submit their products for inclusion on California’s first Unflavored Tobacco List (UTL). All submissions must be received by October 9, 2025, in order to be considered for the December 31, 2025, deadline. Manufacturers and importers can submit their products after October 9, 2025, but there is no guarantee that their cigars will be on the approved list as of December 31, 2025.

Any tobacco product not included on the UTL at that time will be illegal to sell in California, with only limited exceptions.

One such exception applies to “premium cigars,” as defined in AB-3218. "A "premium cigar" means any cigar that is handmade, is not mass produced by use of mechanization, has a wrapper that is made entirely from whole tobacco leaf, and has a wholesale price of no less than twelve dollars ($12). A premium cigar does not have a filter, tip, or nontobacco mouthpiece and is capped by hand.".

It is essential to note that the exemption is contingent upon the wholesale price requirement—cigars must meet a minimum wholesale price of $12 to qualify for the exemption.

Because this definition has raised many questions among retailers, CART has worked with the California Department of Tax and Fee Administration (CDTFA) to provide some answers, which are outlined below.

1. Does the $12 wholesale price exemption apply to both flavored and unflavored premium cigars?

Answer: Yes. The flavor ban does not apply to premium cigars—whether flavored or unflavored—with a wholesale price (the retailer’s purchase price, including the California tobacco excise tax) of $12 or more (HSC 104559.5).

2. Does the $12 wholesale price include distributor markup and excise taxes?

Answer: Yes. A retailer’s wholesale price is the purchase price paid to a wholesaler or distributor, which includes California tobacco excise taxes and typically the seller’s markup. Retailers cannot possess or purchase untaxed tobacco products. Any untaxed products found at a retail location are subject to seizure (BPC 22974.3(b)).

3. What should retailers do with unflavored premium cigars not listed on the UTL?

Answer: Retailers must remove from their shelves any unflavored tobacco products not listed on the Unflavored Tobacco List (UTL) once it is published. The California Attorney General is required to publish the UTL no later than December 31, 2025 (HSC 104559.1(m)). Products not on the UTL may be seized by CDTFA or law enforcement.

Retailers may contact their vendors to determine if these products can be returned for a refund. Distributors may also request a refund of the excise tax they reported and paid to CDTFA on returned products.

Take note of the things you can do now in order to protect your business and avoid possible fines.

1. Flavored tobacco is already illegal. If you still have flavored products, remove and dispose of them immediately.

2. The UTL will be released by December 31, 2025.

3. Only products listed on the UTL will be legal to sell in California.

4. Retailers selling unlisted products risk:

  - Product seizure

  - Civil fines

  - Possible loss of their Tobacco License(s) after multiple violations

CART has requested a list of companies that have submitted their cigars to the Attorney General’s office for inclusion on the UTL.

However, as of today, that information has not been provided. As soon as we receive the requested information, we will provide it to you.

You can read more about the UTL on our website below.

Please visit us at https://www.retailtobacconists.com for the latest news and information on the UTL and all things affecting Retail Tobacconists in the State of California.

Sincerely,

Charles Janigian

President

California Association of Retail Tobacconists, Inc. (CART)