Tobacco Marketing Quotas, Acreage Allotments, and Production Adjustment

Section 1106 of the Omnibus Budget Reconciliation Act of 1993 (1993 Act) amended the Agricultural Adjustment Act of 1938 (1938 Act) to add section 320C which sets out, for tobacco, certain ``domestic marketing assessment'' (DMA) provisions that generally required a ``domestic manufacturer of cigarettes'' (as defined in the 1938 Act) to pay certain assessments and to make certain additional tobacco purchases if, for any calendar year beginning with the 1994 calendar year, domestic tobacco constituted less than 75 percent of the total tobacco used by the manufacturer to produce cigarettes in the United States. Implementing rules were published in the Federal Register on January 11, 1994, and June 1, 1994. This rule provides, as specified in Section 422 of the Uruguay Round Agreements Act (URAA), that the DMA is limited to the 1994 calendar year as a result of the Tariff Rate Quota (TRQ) proclaimed by the President on September 12, 1995, in accordance with Article 28 of the General Agreement on Tariffs and Trade (GATT).

Agency Contact: Joe Lewis, Jr., Consolidated Farm Service Agency (CFSA), United States Department of Agriculture, PO Box 2415, Washington, DC 20013-2415, telephone (202) 720-0795.