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Prevent All Cigarette Trafficking (PACT) Act FAQs
(1) What is the PACT Act?
The Prevent All Cigarette Trafficking (PACT) Act is a federal law that went into effect July 1, 2010. The PACT Act amends provisions of the Jenkins Act (15 U.S.C. §§ 375 - 378) and imposes two reporting requirements on all persons, including manufacturers, who sell, transfer, ship, advertise, or offer to sell cigarettes or smokeless tobacco in interstate commerce.
- The first requirement concerns initial registration.
- The second is a monthly reporting requirement.
Both the registration and the monthly reports must be filed with the Michigan Department of Treasury, Tobacco Tax Unit.
The Act defines cigarettes to include little cigars and roll-your-own tobacco. It prohibits mailing cigarettes and smokeless tobacco through the U.S. Postal Service.
In addition, those selling cigarettes and smokeless tobacco products are required to:
- Pay all applicable federal, state, local or tribal tobacco taxes and affix cigarette tax stamps before delivering any products to any customer.
- Check the age and ID of customers at the time of purchase and when the tobacco products are delivered.
(2) I am an out of state distributor that advertises for sale or sells cigarettes and smokeless tobacco products to Michigan licensed wholesalers and unclassified acquirers, do I have to do anything to comply with the PACT Act?
Yes, if you ship/transfer/sell cigarettes and smokeless tobacco products into Michigan or you advertise these products for sale in Michigan you must comply with the PACT Act and register with the Federal Government and the State of Michigan and submit a monthly sales report to the Michigan Department of Treasury.
(3) How do I register with the State of Michigan to comply with the PACT Act?
If you operate a business for profit that sells, transfers, or ships cigarettes or smokeless tobacco for interstate commerce into Michigan, or advertises these products for sale in Michigan, you must register with the Federal Government and the State of Michigan and submit a monthly sales report.
Use the federal PACT Act Registration (ATF Form 5070.1) to register your business to comply with the PACT Act and forward a copy of this form to the Michigan Department of Treasury, Tobacco Tax Unit, P.O. Box 30474 Lansing, MI 48909 or fax it to (517) 636-4631.
If you're a delivery seller, you must apply for a Michigan cigarette/other tobacco products tax license if you plan to sell cigarettes or smokeless tobacco in Michigan. Use Form 336 to apply for a Michigan tobacco license.
If you have questions about registering for the PACT Act or about cigarette or tobacco tax, call the Tobacco Tax Unit at (517) 636-4630. You can download a tobacco license application Form 336 and mail the registration/application to the Michigan Department of Treasury, Tobacco Tax Unit, P.O. Box 30474 Lansing, MI 48909, or fax it to (517) 636-4631. You should receive your license within four weeks.
(4) How do I know if I am a "delivery seller" and required to apply for a tobacco license?
A delivery seller makes delivery sales. Delivery sales are sales of cigarettes or smokeless tobacco made to a consumer when:
- The consumer typically submits his order by telephone, the mail, the Internet, or is not otherwise physically present when the purchase is made, or
- The cigarettes or smokeless tobacco is delivered by common carrier or other delivery service, or
- The seller is not in the physical presence of the buyer when he takes possession of the product.
(5) When are my monthly reports due?
On or before the 10th day of each calendar month, any person who sells, transfers, ships, advertises, or offers for sale cigarettes or smokeless tobacco into Michigan must file with the Michigan Department of Treasury, Tobacco Tax Unit, a memorandum or a copy of the invoice covering each and every shipment of cigarettes or smokeless tobacco made during the previous calendar month into the state. The memorandum or invoice information must be organized by customer's city or town, and by ZIP code, and include:
- the name and address of the person to whom the shipment was made;
- the brand and quantity of cigarettes or smokeless tobacco; and
- the name, address, and telephone number of the person delivering the shipment to the recipient on behalf of the delivery seller.
The Department suggests using electronic media (such as CD, DVD, or floppy disk) to submit the data. Standard file formats such as Database file (.dbf), Delimited/Plain text file (.txt) or Spreadsheet file (.xls) are recommended.
Additionally, Monthly PACT ACT Reports for Cigarette (form 4855) and Tobacco Sales (form 4856) are available.
Monthly PACT ACT Report – Cigarette Sales Report (form 4855)
Monthly PACT ACT Report – Tobacco Sales Report (form 4856)