Biden Administration considering ban on Nicaraguan Imports

[MrBirdman]

6 hours ago, El Presidente said:

There would be a boom in Dom/Honduran cigar brands/lines

Nics would go bandless into other countries and into "new blend Honduran/Dom lines. 

Nics could go bandless by container into 3rd country before landing in US....and then boxed/banded in Florida as anything you wanted. 

PITA certainly.  Increase in costs but workable for the right pirates. 

This industry is not short of pirates 

I don’t doubt any of that would come to pass; my point is that it would still be hugely disruptive. Entire lines and even producers would be wiped out while the industry made adjustments.

Furthermore, while US distributors can get away with winking at consumers about the origin, the state department won’t be up to play along. For a domestic company to engage in organized evasion of an import ban would risk considerable civil and even criminal liability. Small scale, sure, no problem. But producers here couldn’t just take off the bands (which don’t matter anyway if they’re fraudulently labeled as non-Nic), ship through 3rd countries, and keep the status quo without a hitch. 

All the more reason a tobacco ban is probably unlikely  

 

[Ford2112]

I don't smoke a great many Nica Cigars ,but I feel for all the B&Ms and consumers who would be affected were this to come to fruition.

[Bri Fi]

13 hours ago, Heels82 said:

Whoa whoa, don't get all JFK on me now with the one box purchase...😁

I’ll take my one box and brains intact. 

[El Presidente]

On 9/5/2022 at 1:47 PM, MrBirdman said:

I don’t doubt any of that would come to pass; my point is that it would still be hugely disruptive. Entire lines and even producers would be wiped out while the industry made adjustments.

Furthermore, while US distributors can get away with winking at consumers about the origin, the state department won’t be up to play along. For a domestic company to engage in organized evasion of an import ban would risk considerable civil and even criminal liability. Small scale, sure, no problem. But producers here couldn’t just take off the bands (which don’t matter anyway if they’re fraudulently labeled as non-Nic), ship through 3rd countries, and keep the status quo without a hitch. 

All the more reason a tobacco ban is probably unlikely  

 

Disruptive yes. 

However, stupid laws by stupid politicians drive people into a corner.  The big and medium sized boys in the game largely have operations (or at least relationships) outside of Nicaragua. Those avenues will be utilised to ensure cashflow gets them through to the other side. It may not be their own cigar brands but it will (  at the very least) be leaf sales. Worse comes to worse and Padron could sell every stick in Europe and raise it's middle finger to Biden. 

The smaller guys will be in trouble subject to their level of nouse and connections. Most of them are connected and they will be fine. 

The Nicaraguan cigar industry at this level is largely made up of talented and driven people who have been screwed over several times in their lives. Don't lose too much sleep. There are a couple of thousand European/Middle east and Asian retailers/distributors who would love to talk to them. 

 

[ha_banos]

On 9/4/2022 at 10:36 PM, El Presidente said:

There would be a boom in Dom/Honduran cigar brands/lines

Nics would go bandless into other countries and into "new blend Honduran/Dom lines. 

Nics could go bandless by container into 3rd country before landing in US....and then boxed/banded in Florida as anything you wanted. 

PITA certainly.  Increase in costs but workable for the right pirates. 

This industry is not short of pirates 

One man's pirate is another's entrepreneur!

 

[SCgarman]

5 hours ago, El Presidente said:

Disruptive yes. 

However, stupid laws by stupid politicians drive people into a corner.  The big and medium sized boys in the game largely have operations (or at least relationships) outside of Nicaragua. Those avenues will be utilised to ensure cashflow gets them through to the other side. It may not be their own cigar brands but it will (  at the very least) be leaf sales. Worse comes to worse and Padron could sell every stick in Europe and raise it's middle finger to Biden. 

The smaller guys will be in trouble subject to their level of nouse and connections. Most of them are connected and they will be fine. 

The Nicaraguan cigar industry at this level is largely made up of talented and driven people who have been screwed over several times in their lives. Don't lose too much sleep. There are a couple of thousand European/Middle east and Asian retailers/distributors who would love to talk to them. 

 

Moreso now than ever with Cuban cigar shelves empty for the most part!