TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES; PRODUCTS, WHETHER OR NOT CONTAINING NICOTINE, INTENDED FOR INHALATION WITHOUT COMBUSTION; OTHER NICOTINE CONTAINING PRODUCTS INTENDED FOR THE INTAKE OF NICOTINE INTO THE HUMAN BODY

Chapter 24 of the EU Customs Tariff covers unmanufactured and manufactured tobacco as well as industrial tobacco substitutes. It classifies unstemmed tobacco (raw and dried tobacco leaves) and stemmed tobacco, which serves as raw material for the tobacco industry. In terms of tobacco products, the chapter covers cigars, cigarillos and cigarettes — both from tobacco and tobacco substitutes, smoking tobacco (pipe tobacco, roll-your-own), chewing tobacco and snuff, as well as homogenised and reconstituted tobacco and tobacco extracts and essences. Amendments to the tariff also take into account next-generation tobacco products, including heated tobacco (e.g. inserts for IQOS and glo devices). Industrial tobacco substitutes include products that do not contain tobacco but are intended for smoking or inhalation. The import of tobacco and tobacco products into the EU is subject to strict regulatory controls, including health requirements (Tobacco Products Directive 2014/40/EU), the tobacco traceability and tracking system (Track & Trace), mandatory health warnings on packaging, the ban on flavoured cigarettes (with the exception of menthol until 2020) and control of substances contained in tobacco smoke. In addition to customs duty, tobacco products are subject to high excise duty and VAT.

Customs duty rates on tobacco and tobacco products are relatively moderate compared to excise duty burdens. Unmanufactured tobacco is subject to duty from 18.4% (max 24 EUR/100 kg) to 22% (max 24 EUR/100 kg) depending on the type. Cigars and cigarillos — 26%. Cigarettes — 57.6%. Smoking tobacco — from 18.4% to 74.9%. Chewing tobacco and snuff — 41.6%. Tobacco substitutes — 18.4%. It should be emphasised, however, that customs duty represents only a small fraction of the total fiscal burden — the main cost is excise duty, which in Poland on cigarettes amounts to several hundred percent of the manufacturer's price. The EU applies tariff rate quotas on raw tobacco, including from the USA, Brazil and Zimbabwe, with reduced duty rates.

Classification in Chapter 24 requires distinguishing between unmanufactured tobacco (leaves, stemmed) and manufactured tobacco products (cigarettes, cigars, smoking tobacco). The intended use of the product is crucial — heated tobacco (heat-not-burn) may have different CN codes from traditional smoking tobacco. Tobacco substitutes (products without tobacco for smoking or inhalation) have a separate classification. E-cigarettes and e-liquids not containing tobacco may not be classified in Chapter 24. Homogenised and reconstituted tobacco (in sheets) has a specific subheading. It should be noted that excise licences and registration in the Track & Trace system are required.