Dear QuickDraw Express retailers:
As you may be aware, Congress appears poised to pass a new Federal Transportation Funding Act, also known as the Highway Bill. Section 100122 of the Highway Bill directly affects the use of the QuickDraw Express. It reads:
SEC. 100122. ROLL-YOUR-OWN CIGARETTE MACHINES.
(a) IN GENERAL.Subsection (d) of section 5702 of the Internal
Revenue Code of 1986 is amended by adding at the end the following
new flush sentence:
‘ ‘Such term shall include any person who for commercial purposes
makes available for consumer use (including such consumer’s personal
consumption or use under paragraph (1)) a machine capable
of making cigarettes, cigars, or other tobacco products. A person
making such a machine available for consumer use shall be deemed
the person making the removal as defined by subsection (j) with respect
to any tobacco products manufactured by such machine. A person
who sells a machine directly to a consumer at retail for a consumer’s
personal home use is not making a machine available for
commercial purposes if such machine is not used at a retail premises
and is designed to produce tobacco products only in personal
(b) EFFECTIVE DATE.The amendment made by this section
shall apply to articles removed after the date of the enactment of this Act.
Because the current federal fuel taxes expire on June 30, 2012, we expect the Highway Bill to be signed into law in the near future. As soon as it the Highway Bill is passed, in order to allow the QuickDraw Express to be used in commercial setting retailers, will need to have a federal tobacco products manufacturing permit.
Effective immediately, the QuickDraw Batch Processing (QDBP) has been shut down. You must call SAM Manufacturing for any requested reloads. 330-729-9192. You may call in any reload requests prior to enactment of the Highway Bill. Our staff will be in the office to take telephone orders during its normal business hours today and tomorrow. We will have staff available on Saturday, June 30th to take orders from 8:00 a.m. until 11 a.m. EST. Any orders not received by 11 am on 6/30/12 will not be filled. Any telephone orders for reloads of $ 500.00 or more will require a wire transfer. Or you may send a certified/ bank check sent to our office via Overnight Mail Delivery Only to be received on Friday. Our staff can assist you with instructions for wiring money.
We cannot monitor when your machine is used, and will not refund any past, current, or future reload fees you have made. You maintain a contractual obligation to comply with all federal, state, and local, laws in conjunction with the operating of the QuickDraw Express.
We will not be buying back any machines or accepting any returns on parts.
After SAM Manufacturing receives notice of enactment of the Highway Bill, SAM Manufacturing will not process any requests for reloads unless:
• You provide SAM Manufacturing with written proof that you have obtained a tobacco products manufacturing permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB) that permits you to manufacture cigarettes.
• You demonstrate that you have achieved non-profit status and enter a written declaration (prepared by SAM Manufacturing) that the QuickDraw Express in your possession will be used only for non-commercial purposes.
We are disappointed in the recent legislative initiative to limit our business model, and hope that many of you successfully transition into permitted manufacturers under the new law. Please contact your distributor should you have any questions.