For Marcelo Cadillo, the American dream was filled with bins of tobacco leaves.
Customers from as far as San Francisco met in a tiny roll of his own shop he opened in Niles district of Fremont last year. There, they can grind tobacco and roll their own cigarettes with the help of small cars – about half the cost of buying brands sold in stores.
But it is doubtful whether the enemy had sent a dream to smoke.
Federal Law highway that U.S. President Barack Obama signed this month included a provision that imposed limits on tobacco as the stern stores like Cadillo that he immediately closed his shop.
“It was heartbreaking,” said Cadillo, which revealed a copy of the bill in its showcase windows. “I felt like I got hit in the stomach.”
The new legislation expands the definition of tobacco manufacturers include companies that use a roll your own cigarette machines, many of whom still managed to avoid the high costs and more stringent regulations, particularly with the lower taxed pipe tobacco, supporters of the law say.
The bill increases taxes and imposes restrictions on the deployment of its own business to the level of branded manufacturers. One distributor estimated that about 10 roll your own business operated in Northern California.
Owners of one in Vallejo began offering a roll of his own car four months ago in a former video store. They are closed on July 6, the day the bill was passed by the highway, (Vallejo) Times-Herald reports.
Big Tobacco has supported the law, but the National Association of Convenience Stores blew the charge.
The Association argues that the disparity between the roll your own cigarette businesses and traditional brands, “threatens the existence of traditional retailers,” in addition to “drain the federal and state tax revenues and erosion of a number of laws aimed at regulating cigarettes.”
As Corey Fitze, director of government relations for the group of convenience store put it last week: “What shall we say to our members, who say:” I’m losing 30 percent of their business to a tobacco shop across the street? “
The National Association of Convenience Stores more than 148,000 stores in the U.S., including about 13,000 in California.
Convenience stores have begun to cut back in 2009, new laws sharply raised the price of a roll your own tobacco, but only slightly increased the cost of pipe tobacco.
This led to growing sales of pipe tobacco and rolls your own tobacco dip as even on alcohol and tobacco tax and trade bureau was trying to find the regulatory standards to distinguish between two tobaccos.
Government Accountability Office ultimately concluded that the roll of its own stores have started using lower taxed products.
“Roll your own cigarette machines to take advantage of a loophole unintended tax, but it’s wrong,” Sen. Max Baucus, D-Mont., Who sponsored the amendment, told The Wall Street Journal in March.
Cadillo, 31, described his product as “all natural” without additives. His clients will shred what is called the “band” tobacco – leaf, which has its middle of the stem removed – and then roll it in cigarettes with the help of machines.
“I was a smoker forever, and I’m trying to figure out a healthy alternative,” he said.
Shop Cadillo, in the natural tobacco leaf, there were 10 small roll of its own machines are typically used in homes. These machines cost a fraction of $ 30,000 to $ 35,000, which more than a roll of its own operations will pay for the machines that look like wooden cabinets.
The new law affects all sizes of machines, however, and the big tobacco could not be happier.
“The position of Philip Morris USA on businesses that operate RYO cigarette mills, they are the manufacturers of cigarettes and to make tax payments, are regulated (Food and Drug Administration), and the settlement of the state to make payments, like other cigarette manufacturers’ representative of Philip Morris USA David Sutton wrote in an e-mail.
Jude Silva, one of the clients Cadillo, which is called the law draft, stating that the cigarettes, he turned to natural tobacco leaf was better for him.
“If you want to quit smoking, those cigarettes to smoke,” Silva said. “For me it was so cool. When topcigarettes.biz/camel-cigarettes/camel-lights now, I feel like vomiting.”
Cadillo, who lives alone, since 15 years, said he invested more than $ 20,000 in his business, which opened late last year. Now he hopes to save enough money to start a vintage candy store in the same place.
“I put myself through college, graduated and just worked very hard,” said Cadillo, who said he graduated from the Art Institute in San Francisco in 2008. “I’ve always had two, three, four jobs, even at that time. I saved every penny I can open his shop, and at night he was taken away from me.
“It hurts me.”