Tobacco Importer Sues US Over Tax Rates

Law360, New York (July 16, 2010, 5:09 PM EDT) -- A domestic importer of “gutkha” has sued the U.S. government, challenging an agency action labeling the Indian tobacco product as snuff, rather than chewing tobacco, which comes with a tax rate that is three times as high.

Shah Bros. Inc. filed a complaint Thursday in the U.S. Court of International Trade, alleging the U.S. Alcohol and Tobacco Tax and Trade Bureau's failure to use an objective test to determine the taxes on imports of gutkha was arbitrary and erroneous.

Importers have long shipped and marketed gutkha,...
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