Questions and Answers

No. The PACT Act does not address the receipt of products.

A person who does not sell, transfer, or ship for profit cigarettes (which will include electronic nicotine delivery systems or “ENDS” after March 27, 2021) or smokeless tobacco in interstate commerce, such cigarettes or smokeless tobacco are shipped into a state, locality or Indian country of an Indian tribe taxing the sale or use of cigarettes or smokeless tobacco and who does not advertise or offers cigarettes or smokeless tobacco for such sale, transfer or shipment, does not need to register with ATF. Therefore, a retailer who does not do any of these activities, but who only receives shipments from other vendors, does not need to register with ATF.

ATF compliance checks and audits will depend on numerous factors including industry compliance; thus, ATF cannot answer this question at this time. ATF currently conducts periodic PACT Act inspections and issues civil fines for PACT Act violations.

Yes. ATF works closely with industry members to conduct routine checks and audits.

The first PACT Act reports were due on April 10, 2021.

According to 15 U.S.C. § 376(a)(2), all reports are due on the 10th day of each calendar month with the tobacco tax administrator of the state into which shipments are made, a memorandum or a copy of the invoice covering every shipment of cigarettes (includes electronic nicotine delivery systems, a.k.a. ENDS) or smokeless tobacco made during the previous calendar month into the state. Each memorandum or invoice must include the name and address of the person to whom the shipment was made, the brand, the quantity, the name, address, and phone number of the person delivering the shipment to the recipient on behalf of the delivery seller. All invoice and memoranda information relating to specific customers must be organized by city or town and by zip code.
 

The PACT Act not only applies to shipments in interstate commerce (see 15 U.S.C. § 376), but also to all delivery sales (see 15 U.S.C. § 376a).

The term “delivery sale” means any sale of cigarettes (including electronic nicotine delivery systems, a.k.a. ENDS) or smokeless tobacco to a consumer if:

• the consumer submits the order for the sale by means of a telephone or other method of voice transmission, the mails, or the internet or other online service, or the seller is otherwise not in the physical presence of the buyer when the request for purchase or order is made; or
• the cigarettes or smokeless tobacco are delivered to the buyer by common carrier, private delivery service, or other method of remote delivery, or the seller is not in the physical presence of the buyer when the buyer obtains possession of the cigarettes or smokeless tobacco.

See 15 U.S.C. § 375.

Delivery sales are subject to legal requirements relating to:

1. shipping;
2. recordkeeping requirements;
3. all state, local, tribal, and other laws generally applicable to the sale as if the delivery sales occurred entirely within that specific state and place, including laws imposing—
   • (A) excise taxes;
   • (B) licensing and tax-stamping requirements;
   • (C) restrictions on sales to minors; and
   • (D) other payment obligations or legal requirements relating to the sale, distribution, or delivery of cigarettes or smokeless tobacco; and
4. the tax collection requirements set forth in subsection (D).

See 15 U.S.C. § 376a.

No. Monthly reports for electronic nicotine delivery systems (ENDS) only need to be filed in states, localities and Indian territories that tax the sale or use of ENDS, not with ATF.

Whether the USPS, a third-party common carrier, or your own delivery service is used, any person who sells, transfers or ships electronic nicotine delivery systems (ENDS) for profit in interstate commerce into a state, locality or Indian country of an Indian tribe taxing the sale or use of ENDS or who advertises or offers ENDS for such sale, transfer, or shipment, must register with ATF and file reports with the states, localities and Indian countries where the ENDS are being sold, transferred or shipped. See 15 U.S.C. §§ 375 and 376.

Additionally, an online sale of ENDS to a consumer who is not physically present is a delivery sale.

The term “delivery sale” means any sale of cigarettes (including ENDS) or smokeless tobacco to a consumer if:

• the consumer submits the order for the sale by means of a telephone or other method of voice transmission, emails, traditional mail, the internet or other online service, or the seller is otherwise not in the physical presence of the buyer when the request for purchase or order is made; or
• the cigarettes or smokeless tobacco are delivered to the buyer by common carrier, private delivery service, or other method of remote delivery, or the seller is not in the physical presence of the buyer when the buyer obtains possession of the cigarettes or smokeless tobacco.

See 15 U.S.C. § 375.

Delivery sales are subject to legal requirements relating to:

1. shipping;
2. recordkeeping requirements;
3. all state, local, tribal, and other laws generally applicable to the sale as if the delivery sales occurred entirely within that specific state and place, including laws imposing—
   • (A) excise taxes;
   • (B) licensing and tax-stamping requirements;
   • (C) restrictions on sales to minors; and
   • (D) other payment obligations or legal requirements relating to the sale, distribution, or delivery of cigarettes or smokeless tobacco; and
4. the tax collection requirements set forth in subsection (D).

See 15 U.S.C. § 376a.

Whether one person is responsible for the bad acts of another depends on general principles of law such as those pertaining to aiding and abetting and conspiracy and must be analyzed on a case-by-case basis. Generally speaking, one’s liability will be tied to one’s knowledge of and complicity in the other’s bad act.

Example of Bad Acts

For example, a manufacturer or wholesaler may reasonably believe that an out-of-state retailer/person who drives hundreds of miles to buy a tobacco product that they can readily purchase in their home state is evading tax and reporting requirements.

If the seller sells products to this retailer/person despite having reasonable cause to believe the retailer/person is not a legitimate tax-paying retailer, the seller may potentially be liable under the PACT Act and other laws.

On June 29, 2010, the Prevent All Cigarette Trafficking Act (PACT Act) went into effect.  The law amends the Jenkins Act, 15 U.S.C. Chapter 10A, which governs the collection of taxes on, and trafficking in, cigarettes and smokeless tobacco. The PACT Act revised definitions in the Jenkins Act, provided new requirements for registration, reporting, and recordkeeping, and increased penalties for criminal violations.  The PACT Act also amends the Contraband Cigarette Trafficking Act, 18 U.S. C. Chapter 114, by providing ATF with additional inspection authority. The PACT Act generally bans the mailing of cigarettes: this provision is enforced by the U.S. Postal Service. The PACT Act also provides new delivery requirements and establishes a noncompliant delivery seller list, with prohibition on deliveries.  The Act expand requirements for delivery (non-store/Internet/mail order)  sales of cigarettes by requiring each delivery seller, with respect to delivery sales into a specific state and place, to (1) include on the bill of lading for the shipping package containing cigarettes or smokeless tobacco a clear and conspicuous statement that Federal law requires the payment of all applicable excise and sales taxes and compliance with applicable licensing and tax-stamping obligations; and (2) make records of all delivery sales accessible to the Attorney General.  

The Act requires ATF to compile a list of noncompliant delivery sellers of cigarettes and smokeless tobacco and to distribute the list to State attorneys general, State tax administrators, common carriers and other couriers, including the U.S. Postal Service. 

Cigarettes, roll-your-own tobacco, and smokeless tobacco are covered.  Cigars are excluded.

Any sale of cigarettes or smokeless tobacco to a consumer if -

(A) the consumer orders by telephone or other method of voice transmission, the mails, or the Internet or other online service, or the seller is otherwise not in the physical presence of the buyer when the request for purchase or order is made; or 

(B) the cigarettes or smokeless tobacco products are delivered to the buyer by common carrier, private delivery service, or other method of remote delivery, or the seller is not in the physical presence of the buyer when the buyer obtains possession of the cigarettes or smokeless tobacco. 

Any person (other than a local messenger service or the U.S. Postal Service) that holds itself out to the general public as a provider for hire of the transportation by water, land, or air of merchandise (regardless of whether the person actually operates the vessel, vehicle, or aircraft by which the transportation is provided) between a port or place and a port or place in the United States. 

The term “interstate commerce” includes commerce between any place in a State and any place outside of that State, commerce between a State and Indian Country in the State, or commerce between points in the same State but through any place outside of the State or through any Indian Country. The term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States. 

Yes, even if the sale and transportation occurred within the same State.

Yes. ATF received comments from Tribal Governments and their representatives during a consultation process, including a consultation meeting held on June 8, 2010.  ATF also received written comments in response to ATF’s open letters to tribal leaders.  ATF’s response to these comments, “Implementation of the Prevent All Cigarette Trafficking Act of 2009 (PACT Act) - Tribal Consultation Process” is posted on the ATF website, https://www.atf.gov/alcohol-tobacco . 

At this time, no.  ATF has deemed that the PACT Act is primarily self-executing and is providing information through open letters and this FAQ.  However, ATF reserves the right to issue regulations and will invite comments through Tribal consultation prior to implementation as warranted. 

Any person who sells, transfers, or ships for profit cigarettes or smokeless tobacco in interstate commerce, whereby such cigarettes or smokeless tobacco are shipped into a State, locality, or Indian country of an Indian tribe taxing the sale or use of cigarettes or smokeless tobacco or who advertises or offers cigarettes or smokeless tobacco for such sale, transfer, or shipment. 

Unfortunately, no. Qualification requirements must be developed based on the position, series and grade announced. Agencies must develop these requirements before the announcement opens, and agencies are prohibited from requiring more than what is necessary to do the job from applicants. Agencies are also not allowed to compare applicants against one another; they are only allowed to compare applicants against the requirements.

In simple terms, qualified veterans are essentially referred ahead of non-veterans or non-preference eligibles. Selecting officials may not bypass qualified veterans over non-veterans, unless the referred veteran(s) are selected, withdraw from competition, or in rare cases a pass over is granted.

“Category Rating” is used for positions advertised under Delegated Examining procedures (open to all U.S. citizens to apply). Under Category Rating, applicants are placed into groups (Best Qualified, Well Qualified and Qualified) based on the contents of their application. Veterans with a disability of 10 percent or more are placed at the top of the highest category on the referral list (except for scientific or professional positions at the GS-9 level or higher) if they meet minimum qualifications. Veterans’ preference does not apply to positions that are covered by a Direct Hire Authority (DHA). If a position is covered by a DHA, it will be stated in the announcement.

ATF receives a lot of highly qualified veteran applicants for most all 1800, clerical and administrative positions. It can be very challenging to get referred to the hiring manager(s), if you are a non-veteran applying to those positions at ATF that are open to the public, but we encourage you to continue to apply.

No. Only veterans discharged or released from active duty in the armed forces under honorable conditions are eligible for veterans’ preference. For more information about veterans’ preference, visit Feds Hire Vets.

The prohibition against unlicensed dealing is a statutory criminal prohibition. ATF’s enforcement authority against unlicensed dealing comes from the law (the Gun Control Act as amended by the Bipartisan Safer Communities Act), not from the 2024 rule. The repeal of the rule should have no effect on any ATF trafficking prosecutions. It remains unlawful for a person to “deal” in firearms without a federal firearms license, that is, to intend a pattern of repeated buying and selling motivated predominantly by profit. ATF continues its efforts to identify those operating outside of the law and, working with our partners in the U.S. Attorney’s offices, to bring these individuals to justice.

Your resume must thoroughly describe how your skills and experiences align with the criteria defined in the qualifications section of the job announcement and support your responses to the assessment questionnaire. Federal Human Resources professionals operate under various federal employment laws, rules and regulations. We are prohibited from drawing conclusions or making assumptions regarding your experience or qualifications. It is up to you to describe your past work experience in detail by providing examples related to those listed in the requirements section of the job announcement.

Your experience, including relevant volunteer, paid or unpaid work and roles in community organizations, should address all qualifications in the vacancy announcement. Be specific to ensure the hiring agency can determine the experience they are seeking. If the qualifications section says you need experience developing quality assurance standard operating procedures and division policies, you need to provide evidence of this qualifying experience in your resume.

Minimum or basic qualifications are intended to identify applicants who are likely to perform successfully on the job, and to screen out those who are unlikely to do so. They provide critical information that relates to the work of vacant positions to be filled. Hiring officials and human resources professionals use minimum qualifications in vacancy announcements to pinpoint education and/or experience related to and qualifying for vacant positions. The qualifications describe the qualifying education and/or experience required for vacant positions. This information in vacancy announcements is every applicant’s roadmap for determining whether they meet the qualifications and should apply to vacancy announcements.

Current criminal investigators may apply under an open announcement, however, applicants who submit an application under an “entry level” announcement will only be considered for a position at the GS grade 5, 7 or 9 level.

ATF is still conducting legal reviews for other, more technically challenging rules. If changes are needed following the review, a proposal will be published. As with all proposals, they will go through the full notice-and-comment process.

This effort is pursuant to the President’s Executive Order directing a review of the regulations to protect Second Amendment rights. ATF has been examining all regulations to determine whether they are the best interpretation of the law reflecting the intent of the Congress and consistency with the Second Amendment and whether they impose any unnecessary burdens on public without enhancing public safety.