The Tobacco and Electronic Nicotine Delivery Systems (ENDS)/Vape industry is subject to stringent federal and state taxes and regulations, including the Prevent All Cigarette Trafficking (PACT) Act, The Contraband Cigarette Trafficking Act, (CCTA), Family Smoking Prevention and Tobacco Control Act, the Internal Revenue Code, TTB regulations (27 CFR Part 40), and state-specific tax, licensing, and regulatory laws. Our firm designs tailored compliance programs to address PACT Act, CCTA , State and local tax, licensing, manufacturing, labeling, advertising, and distribution requirements. We develop internal policies, train employees, and ensure proper payment, recordkeeping for production, sales, and tax obligations. We represent defend companies who have been sanctioned by Federal and State Governments and work out optimal resolutions which provide for future operations. Our proactive approach identifies compliance gaps before they escalate into violations, protecting your permit and reputation. As ongoing counsel, we review operational changes and transactions to ensure adherence to evolving regulations.

The PACT Act administered by ATF imposes strict requirements on businesses engaged in the interstate shipment of ENDS/VAPEs , cigarettes and smokeless tobacco. It mandates registration with ATF and state tax administrators, detailed delivery records, and compliance with state tax and age-verification laws. ATF has inspection authority under the PACT Act. Non-compliance can lead to civil fines, criminal charges, or injunctions or placement on the PACT Act Non-Compliance List which bars the shipments of tobacco products by persons on the list.

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We guide clients through PACT Act registration, reporting (e.g., monthly ATF Form 5200.24), and delivery protocols to ensure compliance with 15 U.S.C. § 375–378.  We assist companies which have been subject to an ATF inspection. We assist clients in avoiding placement on the PACT Act Non-Compliant List after ATF notifies them that they intend to place them on the list or obtain removal from the list. For alleged violations, we represent clients in ATF, State and local investigations, negotiate optimal resolutions, and defend against enforcement actions in Federal or State court safeguarding your ability to operate.

The CCTA, enforced by ATF, prohibits the trafficking of contraband cigarettes and smokeless tobacco, defined as quantities exceeding 10,000 cigarettes (or 500 cans/pouches of smokeless tobacco) lacking proper tax stamps. Violations carry severe penalties, including fines up to $250,000 and imprisonment for up to seven years under 18 U.S.C. § 2341–2346. ATF has inspection authority of tobacco distributors under the CCTA, who must keep detailed distribution records. ATF also has authority to seize cigarette and smokeless tobacco involved in CCTA violations as well as seize proceeds of CCTA violations. The CCTA is a Racketeer Influenced and Corrupt Organizations Act (RICO) predicate and in criminal cases ATF often charges violations of the Wire Fraud Statute with the CCTA. 

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Our attorneys assist clients in maintaining compliant CCTA records and selling through distribution chains, verifying tax payments, and implementing anti-trafficking controls. In enforcement cases, we challenge allegations and seizures, negotiate settlements, and provide experienced, robust defense in federal court to protect your business and reputation.

Operating in the tobacco industry requires meticulous compliance with federal licensing requirements administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB). Whether you are a manufacturer, importer, wholesaler, or retailer, obtaining and maintaining a TTB permit is essential for lawful operations. Our attorneys assist clients in navigating the complexities of TTB Form 5230.4 (Manufacturer) or Form 5230.5 (Importer) applications, ensuring compliance with background checks, facility standards, and state/local laws.

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We provide end-to-end support for initial permits, renewals, relocations, or expansions, aligning with TTB’s enforcement priorities. Our expertise minimizes delays and reduces the risk of permit denials or violations, keeping your business on solid ground.

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​TTB conducts regular inspections to verify compliance with manufacturing, recordkeeping, and tax requirements. Our team, leveraging former TTB investigators’ insights, conducts mock audits to prepare clients for scrutiny. We review production records, inventory controls, and tax documentation to address vulnerabilities in advance.