California Code, Revenue and Taxation Code - RTC § 30005.5

(a) Any tobacco product that has not yet been distributed in a manner that results in a tax liability under this part.

(b) Any tobacco product that was distributed in a manner that resulted in a tax liability under this part, but that was returned to the distributor after the tax was paid and for which the distributor has either claimed a deduction pursuant to subdivision (c) of Section 30123or 30131.2, or a refund or credit pursuant to Section 30176.2 or Section 30178.2.