Compilation of Rules and Regulations of the State of Georgia › Department 560 - RULES OF DEPARTMENT OF REVENUE › Chapter 560-8 - ALCOHOL AND TOBACCO DIVISION (TOBACCO) › Subject 560-8-1 - GENERAL PROVISIONS › Rule 560-8-1-.01 - Definitions - General

Current through Rules and Regulations filed through June 27, 2024
(1) As used in
				these rules:
(a) "
Carrier"
shall
				mean any person whose business is to transport goods or people while acting in
				the capacity as common, private or contract transporter of a product or service
				using its facilities or those of other carriers.
(b) "
Cigar"
means any roll for
				smoking made wholly or in part of tobacco when the cover of the roll is also
				tobacco.
(c)
"Cigarette"
means any roll for smoking made wholly or in part of tobacco when the
				cover of the roll is paper or any substance other than tobacco.
(d)
"Code"
shall mean the
				"Official Code of Georgia Annotated."
(e)
"Commissioner
" shall mean
				the state revenue commissioner or the commissioner's designated
				representative.
(f) "
Consumer
				Promotion"
shall mean:
1. A
				manufacturer's promotion of cigars, loose tobacco, or smokeless tobacco that:
(i) Is only for use by the
				consumer;
(ii) Is designed and
				intended to induce the consumer to purchase a specified cigar, loose tobacco or
				smokeless tobacco product;
(iii)
				Features cigars, loose tobacco, or smokeless tobacco product packaged with
				distinct promotional labeling from the manufacturer.
2. The promotional component of consumer
				promotions for cigars, little cigars, loose tobacco, or smokeless tobacco is
				excluded from payment of excise tax.
(g) "
Counterfeit cigarette"
means cigarettes that are manufactured, fabricated, assembled,
				processed, packaged, or labeled by any person other than the trademark owner of
				a cigarette brand or the owner's designated agent.
(h) "
Dealer"
means any person
				located within the borders of this state that sells or distributes cigarettes,
				cigars, little cigars, loose tobacco, or smokeless tobacco to a consumer in
				this state.
(i)
"Department
" means the Georgia Department of Revenue.
(j) "
Distributor"
means any
				person, other than a dealer, importer, or manufacturer:
1. Who sells or distributes any or all of the
				following tobacco product in this state:
(i)
				cigarettes;
(ii) cigars, little
				cigars;
(iii) loose tobacco or
				smokeless tobacco.
2.
				Who maintains a warehouse, warehouse personnel, and salespeople who regularly
				contact and call on dealers.
3. Who
				is engaged in the business of importing any or all cigarettes, cigars, little
				cigars, loose tobacco, or smokeless tobacco into this state or who purchases
				any or all cigarettes, cigars, loose tobacco, or smokeless tobacco from other
				manufacturers or distributors.
4.
				Who sells the cigarettes, cigars, loose tobacco or smokeless tobacco to dealers
				for resale in this state but is not in the business of selling the cigarettes,
				cigars, little cigars loose tobacco or smokeless tobacco directly to the
				ultimate consumer.
5. Such term
				shall not include any cigarette manufacturer, export warehouse proprietor, or
				cigarette importer with a valid permit under
				 26 U.S.C. Section 5712, if such person sells or distributes
				cigarettes in this state to cigarette distributors who hold valid and current
				licenses under Code Section
				 48-11-4, or to an export warehouse proprietor or another cigarette manufacturer with a
				valid permit under
				 26 U.S.C. Section 5712.
(k) "
Distributor Promotion"
shall mean:
1. A manufacturer's
				promotion for cigars, little cigars, loose tobacco or smokeless tobacco that:
(i) Is only for use by a distributor who is
				licensed by this State.
(ii) Is
				intended to induce a distributor to purchase a specific cigar, loose tobacco or
				smokeless tobacco product for resale to the retailer.
2. Distributor promotions for cigars, little
				cigars, loose tobacco, or smokeless tobacco are:
(i) Monetary discounts offered directly to a
				distributor for the purchase of cigars, little cigars, loose tobacco, or
				smokeless tobacco.
(ii) Free
				product offered to a distributor to induce it to purchase a specified cigar,
				loose tobacco or smokeless tobacco product.
(iii) Monetary discounts to pay within a
				certain time or purchase a large quantity of cigars, little cigars, loose
				tobacco, or smokeless tobacco product.
3. All such discounts and allowances are
				included in the computation of the wholesale cost price and subject to state
				excise tax.
(l)
				"
Export cigarettes a/k/a Gray cigarettes"
shall mean any finished
				cigarette packaged and marked for export and not for consumption in the United
				States.
(m) "
First taxable
				transaction"
means the first sale, receipt, purchase, possession,
				consumption, handling, distribution, or use of cigars, little cigars,
				cigarettes, loose tobacco, or smokeless tobacco within this state.
(n) "
Importer"
means any person
				who imports into this state from a foreign country, or who brokers in the
				United States, either directly or indirectly, a finished cigarette, finished
				cigar, little cigars, finished loose tobacco or finished smokeless tobacco for
				sale or distribution.
(o)
				"
Individual"
shall mean a natural person.
(p) "
Licensee"
shall mean any
				person who has been granted a license or permit by the Department concerning
				the manufacturing, importing, wholesaling, shipping, distribution, sale, or who
				deals in tobacco products.
(q)
				"
Little cigars
" means cigars not weighing more than three pounds
				per thousand.
(r) "
Loose
				tobacco or smokeless tobacco"
means granulated, plug cut, crimp cut,
				ready rubbed, and other smoking tobacco; snuff or snuff flour; cavendish; plug
				and twist tobacco; fine-cut and other chewing tobaccos; shorts; refuse scraps,
				clippings, cuttings, and sweepings of tobacco; and other kinds and forms of
				tobacco prepared in such manner as to be suitable for chewing or smoking in a
				pipe or otherwise, or both for chewing and smoking, but does not include
				cigarettes or cigars, little cigars, or tobacco purchased for the manufacture
				of cigarettes, cigars, or little cigars by cigarette manufacturers or cigar
				manufacturers.
(s)
				"
Manufacturer"
shall mean any person who manufactures, fabricates,
				assembles, processes, or labels a finished cigar, little cigar, finished
				cigarette, finished loose tobacco, or finished smokeless tobacco
				product.
(t) "
Package"
shall mean a pack, carton, or container of any kind in which cigarettes,
				cigars, little cigars, loose tobacco or smokeless tobacco is offered for sale,
				sold, otherwise distributed, or intended for distribution to
				consumers.
(u) "
Person"
shall mean any individual, firm, partnership, cooperative, nonprofit
				membership corporation, joint venture, association, company, corporation,
				agency, syndicate, estate, trust, business trust, receiver, fiduciary, or other
				group or combination acting as a unit, body politic, or political subdivision
				whether public, private, or quasi-public.
(v) "
Place of business"
shall
				mean the premises of a licensed manufacturer, importer, wholesaler or dealer
				described in the license application.
(w) "
Promotional activities
"
				shall mean any activity other than those set forth in "Consumer Promotion" and
				"Distributor Promotion" directed to the consumer by the manufacturer or
				importer, including solicitation of orders, demonstration and sampling,
				arranging of displays, distribution of literature, posting of advertising,
				exchange of fresh stock, and similar activities for promoting the sale or use
				of loose tobacco, smokeless tobacco, cigars, little cigars, or
				cigarettes.
(x) "
Regulations"
shall mean regulations promulgated by the commissioner pursuant to the
				Code.
(y)
"Related machinery"
means any item, device, conveyance, or vessel of any kind or character
				used in manufacturing, packaging, labeling, stamping, transporting,
				distributing, selling, or possessing counterfeit cigarettes.
(z)
"Representative"
shall mean
				a person, employee, agent, independent contractor, or salesperson acting on
				behalf of or at the direction of the licensee, with or without compensation,
				represents the licensee to a third party.
(aa) "
Sale"
means any sale,
				transfer, exchange, theft, barter, gift, or offer for sale and distribution, in
				any manner or by any means.
(bb)
"Stamp"
means any impression, device, stamp, label, or print
				manufactured, printed, made, or affixed, as provided by the
				commissioner.
(cc)
				"
State
" shall mean the State of Georgia.
(dd) "
Tobacco product"
means
				cigars, cigarettes, little cigars, loose tobacco, smokeless tobacco, or any
				product derived either from tobacco or any of its derivates.
(ee)
"Tobacco-related objects
"
				means the same as set forth under O.C.G.A. §
										16-12-170(1).
(ff) "
Unregistered nonparticipating
				manufacturer"
shall mean a manufacturer of cigarettes that:
1. Is not a signatory to the Master
				Settlement Agreement (MSA) with the state.
2. Is not registered with the Attorney
				General of the State of Georgia.
(gg)
"Vending machine"
means any
				coin, currency, or electronic-operated device used for the automatic
				merchandising of cigars, little cigars, cigarettes, loose tobacco, or smokeless
				tobacco.
(hh)
"Vending
				machine operator"
means the person responsible for supplying product,
				operation, or maintenance of the vending machine.
(ii) "
Warehouse"
means any
				premises of a wholesaler, manufacturer, importer, or shipper other than its
				registered place of business which is used to store tobacco products in
				accordance with the express written approval of the commissioner.
(jj)
"Wholesale cost price"
concerns cigars, little cigars, loose tobacco or smokeless tobacco. It
				shall be computed as follows:
1. If a
				manufacturer is shipping to a state licensee untaxed cigars, little cigars,
				loose tobacco, or smokeless tobacco product, the wholesale cost price shall be
				the manufacturer's invoice price at the time of sale, including the cost of
				shipping and handling, if not itemized, together with any "distributor
				promotions" but exclusive of any "consumer promotions."
2. If a distributor sells to another
				distributor untaxed cigars, little cigars, loose tobacco, or smokeless tobacco
				product, the wholesale list price shall be the selling distributor's sales
				price, including the cost of shipping together with any "distributor
				promotions" but exclusive of any "consumer promotions."
3. If a distributor sells to a dealer untaxed
				cigars, little cigars, loose tobacco, or smokeless tobacco product, the
				wholesale list price shall be the selling distributor's sales price, including
				the cost of shipping and handling together with any "distributor promotions"
				but exclusive of any "consumer promotions."