TRO Extended On Commercial RYO Machines

Companies with RYO cigarette making machines can breath easy for a few more weeks after a judge extended the temporary retraining order (TRO) prohibiting the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) from enforcing the bureau’s recently issued rule regulating commercial RYO cigarette making machines.

The restraining order, originally issued on Nov. 15, 2010, was extended on Nov. 29, for two weeks and will remain in force until Dec. 13, 2010 unless the judge extends it again or the TTB agrees to a longer extension, the National Association of Tobacco Outlets (NATO) reported.

“As a result of this TRO, TTB is not taking enforcement action at this time under the Internal Revenue Code of 1986 (IRC), relative to the TTB Ruling and all requirements set forth therein. TTB has alerted all Bureau employees of the TRO that, at this time, TTB is enjoined from enforcing the TTB Ruling or authorizing others to enforce the TTB Ruling. Please note that the TRO does not rescind the TTB Ruling, but restrains TTB from enforcing it. Accordingly, the TRO does not waive any valid tax liability or other IRC [Internal Revenue Code] obligations that may arise during the pendency of this litigation and which would be resolved at such time as TTB is no longer subject to a court-ordered restraint or completion of the litigation,” the TTB said in a statement.






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