Issue link: https://read.dmtmag.com/i/1545684
42 tobaccoasia Issue 4, 2026 July / August CAA had pushed for a broader definition—one that would have allowed flavored cigars and certain machine-assisted products to be classified as "premium." "The FDA has not defined what a 'characterizing flavor' actually means," CAA argued in court filings, contending that the current definition is vague and difficult to enforce. The court rejected that argument. Mehta found that CAA failed to cite any instances of confusion or enforcement breakdown and concluded that the concerns raised did not justify rewriting the defini- tion through judicial action. CAA could still appeal the decision. "As of right now, the CAA Board will need to deliberate on what this means and go from there," said Scott Pearce, CAA president. "We have not had any discussions about the appeal, and no decisions either way have been made about it. "And while this order means that products meeting this definition are not subject to FDA's regulatory authority or user fees, we are going to be diligently scrutinizing how the FDA may still utilize its deeming authority in the future to regulate premium cigars." Newman said an appeal is unlikely. "The parties could choose to appeal Judge Mehta's decision, but I do not think that is likely to happen," Newman said. "At any time, FDA could decide to start the process of trying to regulate premium cigars again and impose costly and burdensome requirements like graphic health warnings, product testing, premarket review and more fees." Stability, with strings attached Despite its significance, the ruling does not close the book on regulation—it only de- fines the current chapter. Premium cigars remain outside FDA's oversight—for now. All other cigars remain subject to the regulatory agency's oversight. The agency retains full authority to revisit the category through a new rulemaking process, provid- ed that the process addresses the shortcomings identified in the court's earlier decision. "This action will accelerate the administrative process… and allow DEA to proceed in the most expeditious manner consistent with federal law," Mehta noted while discuss- ing broader regulatory processes, reinforcing that agencies—not courts—drive future policy shifts. There are also unresolved financial questions. From 2016 to 2023, cigar com- panies paid more than US$100 million in FDA user fees for products that have since been deemed outside the agency's authority. Whether—or how—that money will be returned remains unclear. For now, the industry has clarity—but not stability. "Premium cigars clearly rep- resent a distinct product category," Habursky said. "This outcome reflects the impor- tance of considering those differences in any regulatory framework." That framework is now defined. What happens next will determine how long it holds. Azim Chowdhury, partner and tobacco industry legal expert, Keller and Heckman. Mike Copperman, executive director and federal regulatory and legislative affairs director at Cigar Rights of America. Gary Pesh, president of CRA board. Premium cigars remain exempt from FDA oversight for now, while all other cigar categories continue to fall under the agency's regulatory authority. Credit NickWinslow CC3.0