Understanding the issue
California's Unflavored Tobacco List grew out of the state's flavored-tobacco restrictions.
In 2020, California enacted Senate Bill 793, which prohibited the sale of many flavored tobacco products. The law included an exemption for products meeting California's definition of a premium cigar. After a referendum delayed implementation, the flavored-tobacco restrictions ultimately took effect in 2023.
California later enacted Assembly Bill 3218, creating the Unflavored Tobacco List. The UTL requires manufacturers and importers of covered unflavored tobacco products to obtain placement on a state-maintained list before those products may legally be sold in California.
The system requires manufacturers or importers to submit detailed product information and certify that covered products lack a characterizing flavor. Current regulations establish fees for initial applications, variants, and annual renewals.
Products meeting California's statutory premium-cigar definition are excluded from the UTL requirement. California DOJ currently describes that exemption as applying to cigars that are handmade, wrapped entirely in whole tobacco leaf, hand-capped, contain no filter or non-tobacco mouthpiece, and have a wholesale price of at least $12.
That last requirement has been a major concern for CRA. Many handmade cigars can satisfy the traditional product characteristics of a premium cigar while selling below the $12 wholesale threshold. Those products do not receive the same exemption solely because of price.
Impact on the premium cigar community
For adult cigar consumers, the UTL can affect which products remain available in California.
If manufacturers determine that the cost or administrative burden of listing particular products is not justified, some products could become more difficult to obtain in the state.
California's price-based exemption also means that two handmade cigars with similar construction may receive different regulatory treatment based on wholesale price.
California retailers must know whether products they stock may legally be sold in the state.
The UTL creates an additional compliance layer because covered products generally must appear on the state list.
Retailers also have to distinguish between cigars that qualify for California's premium-cigar exemption and those that do not.
Local governments may impose tobacco restrictions that are more stringent than state law, so compliance can also vary by locality.
Manufacturers and importers of products that do not qualify for an exemption may face substantial administrative work to maintain access to the California market.
Depending on the product, that can include:
- determining which products require UTL submission
- preparing Brand Style or Variant applications
- providing required supporting information
- paying application and renewal fees
- tracking packaging and SKU variations
- maintaining annual renewals
- monitoring changes to California regulations and classifications
For companies with large portfolios, these requirements can become significant.
How the UTL Works
For tobacco products covered by the law, manufacturers or importers submit individual Brand Styles for inclusion on the UTL.
California defines Brand Style broadly, including distinctions based on characteristics such as size, weight, packaging, UPC, SKU, labeling, and other identifiers.
Current California regulations provide for:
- $300 initial application fee per Brand Style
- $150 fee for qualifying Variants
- $150 annual renewal fee
Covered products that are not listed on the UTL are treated as flavored tobacco products for purposes of California law and generally cannot be sold legally in the state.
Because a manufacturer may sell many sizes, packaging configurations, and individual products, the compliance burden can multiply quickly.
Why the Premium Cigar Definition Matters
California's exemption is narrower than the federal premium-cigar definition recognized in the Mehta litigation.
The California definition includes a minimum wholesale-price requirement of $12. Price does not determine whether a cigar is handmade, made from traditional tobacco, or marketed primarily to adult premium-cigar consumers.
For that reason, CRA has argued that using price as a defining feature can divide products that are otherwise manufactured and consumed in substantially the same way.
The distinction is particularly important for manufacturers and retailers whose product portfolios include handmade cigars below California's price threshold.
Notes
Learn more about the Premium Cigar Definition
Note 1: The U.S. Food & Drug Administration's Center for Tobacco Products defines a premium cigar as follows: (1) are wrapped in whole tobacco leaf; (2) contain a 100 percent leaf tobacco binder; (3) contain at least 50 percent (of the filler by weight) long filler tobacco; (4) are handmade or hand rolled; (5) have no filter, nontobacco tip, or nontobacco mouthpiece; (6) do not have a characterizing flavor other than tobacco; (7) contain only tobacco, water, and vegetable gum with no other ingredients or additives; and (8) weigh more than 6 pounds per 1,000 units.
Note 2: "Brand style" means a style of tobacco product within a brand that is differentiated from other styles of that brand by weight, volume, size, Universal Product Code [("UPC")], Stock Keeping Unit [("SKU")], nicotine content, characterizing flavor, logo, symbol, motto, labeling, marketing, materials, packaging, or other indicia of product identification.
What supporters can do
Premium cigar consumers, retailers, and manufacturers should stay informed about California regulatory changes and CRA's state advocacy work.
California businesses should also verify the current legal status of products they sell and consult appropriate legal or regulatory guidance where necessary.
CRA members help support continued monitoring, regulatory engagement, and advocacy on state policies affecting premium cigars.
Stand with CRA on California UTL and the Risk of Overbroad Tobacco Regulation.
Grassroots pressure moves policy. Add your voice to the coalition of consumers, retailers, and manufacturers working on this issue.