Puerto Rican Tobacco Products and Cigarette Papers and Tubes Shipped From Puerto Rico to the United States (2007R-368P), 16755-16758 [E8-6513]
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Federal Register / Vol. 73, No. 62 / Monday, March 31, 2008 / Rules and Regulations
neither an environmental assessment
nor environmental impact statement is
required.
This rule does not meet the definition
of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because
it is a rule of ‘‘particular applicability.’’
Therefore, it is not subject to the
congressional review requirements in 5
U.S.C. 801–808.
List of Subjects in 21 CFR Part 558
Animal drugs, Animal feeds.
I
(2) 6.8 to provide 60 to 90 mg/
head/day
Zilpaterol.
*
*
(e) * * *
*
*
*
*
*
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Part 41
[T.D. TTB–68; Re: T.D. ATF–444 and Notice
No. 912]
RIN 1513–AB38
Puerto Rican Tobacco Products and
Cigarette Papers and Tubes Shipped
From Puerto Rico to the United States
(2007R–368P)
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Final rule (Treasury decision).
AGENCY:
SUMMARY: The Alcohol and Tobacco Tax
and Trade Bureau is adopting as a final
rule, with some clarifying changes and
editorial corrections, the temporary
regulations set forth in T.D. ATF–444.
These temporary regulations eliminated
the onsite preshipment inspection of,
and the requirement to complete several
ATF forms for, shipments to the United
States of tobacco products and cigarette
papers and tubes manufactured in
Puerto Rico.
DATES: Effective Date: March 31, 2008.
FOR FURTHER INFORMATION CONTACT:
Amy R. Greenberg, Regulations and
Rulings Division, Alcohol and Tobacco
*
Background
Chapter 52 of the Internal Revenue
Code of 1986 (IRC) pertains to the
Federal excise tax on tobacco products
and cigarette papers and tubes. Section
5701 of the IRC (26 U.S.C. 5701)
imposes a tax on such products
manufactured in, or imported into, the
United States. Section 7652(a) of the IRC
(26 U.S.C. 7652(a)) imposes the same
tax, with certain exceptions not
pertinent here, on articles of
merchandise of Puerto Rican
manufacture coming into the United
States and withdrawn for consumption
or sale. The Alcohol and Tobacco Tax
and Trade Bureau (TTB) is responsible
for administering the provisions of
chapter 52 and section 7652(a) of the
IRC as they pertain to the tax on tobacco
products and cigarette papers and tubes,
including promulgating regulations
concerning payment and collection of
the tax and other requirements that
protect the revenue. Prior to January 24,
2003, our predecessor agency, the
Bureau of Alcohol, Tobacco and
Firearms (ATF) administered these
regulations.
On March 8, 2001, ATF published in
the Federal Register (66 FR 13849) a
temporary rule, T.D. ATF–444,
amending the regulations in 27 CFR part
275 to eliminate certain regulatory
requirements related to the shipment of
tobacco products and cigarette papers
and tubes of Puerto Rican manufacture
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Sponsor
*
As in paragraph (e)(1) of this section; see paragraph §§ 558.342(d)
of this chapter. Melengestrol acetate as provided by No. 000009 in
§ 510.600(c) of this chapter.
Tax and Trade Bureau, 1310 G Street,
NW., Suite 200E, Washington, DC
20220; telephone 202–927–8210; or email Amy.Greenberg@ttb.gov.
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF THE TREASURY
Jkt 214001
*
Limitations
Heifers fed in confinement for
slaughter: As in paragraph (e)(1)
of this section; and for suppression
of estrus (heat).
*
BILLING CODE 4160–01–S
jlentini on PROD1PC65 with RULES
*
Melengestrol acetate
to provide 0.25 to 0.5
mg/ head/day
*
15:59 Mar 28, 2008
§ 558.665
Indications for use
*
Dated: March 21, 2008.
Bernadette Dunham,
Director, Center for Veterinary Medicine.
[FR Doc. E8–6601 Filed 3–28–08; 8:45 am]
VerDate Aug<31>2005
2. In § 558.665, add paragraph (e)(2) to
read as follows:
I
1. The authority citation for 21 CFR
part 558 continues to read as follows:
*
*
PART 558—NEW ANIMAL DRUGS FOR
USE IN ANIMAL FEEDS
Combination in
grams/ton
Zilpaterol in grams/ton
*
Therefore, under the Federal Food,
Drug, and Cosmetic Act and under the
authority delegated to the Commissioner
of Food and Drugs and redelegated to
the Center for Veterinary Medicine, 21
CFR part 558 is amended as follows:
Authority: 21 U.S.C. 360b, 371.
I
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057926
*
from Puerto Rico to the United States.
Specifically, ATF amended §§ 275.105,
275.106, 275.110, and 275.111 to
eliminate the requirement that persons
who ship tobacco products and cigarette
papers and tubes of Puerto Rican
manufacture from Puerto Rico to the
United States notify ATF prior to the
shipment, and to eliminate the
requirements that an ATF officer: (1)
Inspect each shipment of such articles;
(2) certify that the amount of tax on the
articles has been calculated correctly;
and (3) release each shipment. The
amended regulations set forth
recordkeeping requirements in place of
the former processes of notification,
physical inspection, certification, and
release. Under the temporary rule,
persons who ship Puerto Rican tobacco
products and cigarette papers and tubes
to the United States must keep and
maintain records to show that the
amount of tax is correctly calculated,
paid (where applicable), and recorded
for audit and examination purposes.
The temporary rule amendments to
§§ 275.106, 275.110, and 275.111 also
eliminated the requirements for the
completion of four specific forms. Two
forms, ATF forms 2987 (5210.8) and
3075 (5200.9), were required to be
submitted to ATF by the company
shipping the products to the United
States, and contained information
readily available from common
commercial records. The elimination of
these forms was intended to relieve the
taxpayer of a duplicative recordkeeping
requirement. The other two forms, ATF
forms 2989 and 3074 (5200.6), were
certificates which were prepared by
ATF officers and affixed to the outside
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Federal Register / Vol. 73, No. 62 / Monday, March 31, 2008 / Rules and Regulations
of each shipping container, affirming
that the appropriate tax had been paid.
These forms were eliminated because
ATF determined that they were not
necessary to protect the Federal excise
tax revenue due on tobacco products
and cigarette papers and tubes.
T.D. ATF–444 also included some
technical corrections to the regulations,
including updating the delegation order
numbers appearing in §§ 275.11 and
275.29.
On the same day that T.D. ATF–444
was published, ATF also published in
the Federal Register (66 FR 13864), a
notice of proposed rulemaking (NPRM),
(Notice No. 912) soliciting comments on
the regulatory amendments contained in
T.D. ATF–444. ATF did not receive any
comments in response to Notice No. 912
by the close of the public comment
period.
Since the publication of T.D. ATF–
444, ATF and then TTB continued to
conduct audits of the commercial
records of companies that ship Puerto
Rican tobacco products or cigarette
papers and tubes from Puerto Rico to
the United States. These audits have
demonstrated that the elimination of the
required inspection prior to shipment,
the elimination of certain forms, and the
replacement of other forms with the
requirement to maintain records, have
allowed TTB and the regulated industry
members to avoid unnecessary
administrative burdens without creating
any jeopardy to the revenue.
Subsequent Regulatory Changes
Following the publication of T.D.
ATF–444, 27 CFR part 275 was
recodified as 27 CFR part 41 pursuant
to T.D. TTB–16, published in the
Federal Register (69 FR 52421) on
August 26, 2004. Thus, all provisions of
the temporary rule identified as sections
in part 275 appear in this final rule as
sections in part 41.
jlentini on PROD1PC65 with RULES
Adoption of Final Rule
Based on the background information
provided above, TTB has determined
that the temporary regulations
published in T.D. ATF–444, recodified
and updated pursuant to T.D. TTB–16,
should be adopted as a final rule with
only minor organizational, plain
language, and editorial changes. We
have made such changes to §§ 41.105,
41.106, 41.110, 41.111, and 41.121 to
enhance their clarity and readability
without substantively affecting their
texts. We have modified the section
headings to §§ 41.106 and 41.111 to
more clearly reflect the content of these
provisions. We have also updated the
Office of Management and Budget
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15:59 Mar 28, 2008
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(OMB) control numbers for §§ 41.105,
41.106, 41.110, and 41.121.
Inapplicability of Delayed Effective
Date
Pursuant to the provisions of 5 U.S.C.
553(d)(1) and (d)(3), we are issuing
these regulations without a delayed
effective date. This rule finalizes
regulations which provided relief from
regulatory restrictions by eliminating
several administrative burdens on
industry members associated with
onsite preshipment inspection of, and
the requirement to complete several
ATF forms for, shipments to the United
States of tobacco products and cigarette
papers and tubes manufactured in
Puerto Rico. By eliminating these
administrative burdens, these final
regulations fit within the meaning of the
relief from a restriction standard in
section 553(d)(1). Furthermore, TTB has
determined that good cause exists in
accordance with section 553(d)(3) to
finalize these regulations immediately,
and without delayed effective date, in
order to continue the alleviation of these
administrative burdens on the industry.
Regulatory Flexibility Act
Pursuant to the requirements of the
Regulatory Flexibility Act (5 U.S.C.
chapter 6), we certify that these
regulations will not have a significant
economic impact on a substantial
number of small entities. These
regulations relieve and simplify certain
administrative obligations. Primarily,
the regulations replace onsite,
preshipment inspections with less
burdensome, periodic recordkeeping
and audit requirements. The regulations
also eliminate four reporting forms in
further reducing administrative and
recordkeeping burdens. Accordingly,
these regulations will not have a
significant economic impact on a
substantial number of small entities and
a regulatory flexibility analysis is not
required. Pursuant to 26 U.S.C. 7805(f),
the temporary regulation was submitted
to the Chief Counsel for Advocacy of the
Small Business Administration for
comment on its impact on small
businesses, and we received no
comments.
Executive Order 12866
It has been determined that this rule
is not a significant regulatory action as
defined by Executive Order 12866.
Therefore, a regulatory assessment is not
required.
Paperwork Reduction Act
The collections of information in the
regulations contained in this final rule
have been previously reviewed and
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approved by Office of Management and
Budget (OMB) in accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. 3504(h)) and assigned control
numbers 1513–0083, 1513–0090, and
1513–0108. An agency may not conduct
or sponsor, and a person is not required
to respond to, a collection of
information unless it displays a valid
control number assigned by OMB.
Although sections of the regulations
covered by these approvals are amended
for clarity, this final rule imposes no
new or revised collection of
information, and does not change the
reporting or recordkeeping burden.
Comments concerning suggestions for
reducing the burden of the collections of
information should be directed to Mary
A. Wood, Alcohol and Tobacco Tax and
Trade Bureau, at any of these addresses:
• P.O. Box 14412, Washington, DC
20044–4412;
• 202–927–8525 (facsimile); or
• formcomments@ttb.gov (e-mail).
Drafting Information
Amy R. Greenberg of the Regulations
and Rulings Division, Alcohol and
Tobacco Tax and Trade Bureau, drafted
this document.
List of Subjects in 27 CFR Part 41
Administrative practice and
procedure, Authority delegations,
Cigarette papers and tubes, Claims,
Electronic fund transfer, Customs duties
and inspection, Excise taxes, Imports,
Labeling, Packaging and containers,
Penalties, Reporting requirements,
Seizures and forfeitures, Surety bonds,
Tobacco products, U.S. possessions,
Warehouses.
Amendments to the Regulations
Accordingly, for the reasons set forth
in the preamble, the temporary rule
published on March 8, 2001, at 66 FR
13849, is adopted as a final rule with
the changes as discussed above and set
forth below.
I
PART 41—IMPORTATION OF
TOBACCO PRODUCTS AND
CIGARETTE PAPERS AND TUBES
1. The authority citation for part 41
continues to read as follows:
I
Authority: 18 U.S.C. 2342; 26 U.S.C. 5701,
5703, 5704, 5705, 5708, 5712, 5713, 5721,
5722, 5723, 5741, 5754, 5761, 5762, 5763,
6301, 6302, 6313, 6404, 7101, 7212, 7342,
7606, 7651, 7652, 7805; 31 U.S.C. 9301, 9303,
9304, 9306.
2. Section 41.105 is revised to read as
follows:
I
§ 41.105
Prepayment of tax.
To prepay, in Puerto Rico, the internal
revenue tax imposed by 26 U.S.C.
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Federal Register / Vol. 73, No. 62 / Monday, March 31, 2008 / Rules and Regulations
7652(a) on tobacco products and
cigarette papers and tubes of Puerto
Rican manufacture to be shipped to the
United States, the shipper must file, or
cause to be filed, a tax return, TTB F
5000.25, with full remittance of the tax
which will become due on those
products.
(Approved by the Office of Management
and Budget under control number 1513–
0090)
3. Section 41.106 is revised to read as
follows:
I
§ 41.106
Record of shipment by taxpayer.
(a) Shipments other than
noncommercial mail shipments. The
taxpayer must ensure that the tax has
been prepaid on the tobacco products
and cigarette papers and tubes in each
shipment. The taxpayer must identify
the tobacco products or cigarette papers
or tubes by including on the bill of
lading or similar record accompanying
the shipment the following information:
(1) The marks and numbers on the
shipping containers;
(2) The number of containers to be
shipped;
(3) The kind of taxable article(s) to be
shipped and the rate of tax applicable to
each kind of article, as specified in
§§ 41.30 through 41.35;
(4) The number of small cigarettes,
large cigarettes, or small cigars to be
shipped;
(5) The number and total sale price of
large cigars having a sale price of not
more than $235.294 per thousand to be
shipped;
(6) The number of large cigars having
a sale price equal to or more than
$235.294 per thousand to be shipped;
(7) The pounds and ounces of
chewing tobacco or snuff to be shipped;
(8) The pounds and ounces of pipe
tobacco or roll-your-own tobacco to be
shipped;
(9) The number of cigarette papers or
tubes to be shipped;
(10) The amount of the tax paid for
each kind of article under this subpart;
(11) The name and address of the
consignee in the United States to whom
the products are to be shipped; and
(12) A notation identifying the
particular TTB F 5000.25 by which the
taxes were prepaid.
(b) Noncommercial mail shipments.
Noncommercial mail shipments of
tobacco products and cigarette papers
and tubes to the United States are
exempt from the requirements of
paragraph (a) of this section, except that
the taxpayer must provide a copy of the
TTB F 5000.25 upon the request of an
appropriate TTB officer.
(Approved by the Office of Management and
Budget under control number 1513–0108)
4. Section 41.110 is revised to read as
follows:
I
§ 41.110 Record of tax computation and
shipment by bonded manufacturer under
deferred taxpayment.
Where tobacco products or cigarette
papers or tubes are to be shipped to the
United States with deferred taxpayment,
the bonded manufacturer must calculate
the tax prior to shipment. The tax
calculation must conform to the
information on the bill of lading or a
similar record accompanying the
shipment, and the date of completing
the bill of lading or similar record
accompanying the shipment will be
treated as the date of computation of the
tax. Tobacco products or cigarette
papers or tubes may be shipped to the
United States in accordance with the
provisions of this section only after
computation of the tax. The bill of
lading or similar record accompanying
the shipment must include the
following information:
(a) The marks and numbers on the
shipping containers;
(b) The number of containers to be
shipped;
(c) The kind of taxable article(s) to be
shipped and the rate of tax applicable to
each kind of article, as specified in
§§ 41.30 through 41.35;
(d) The number of small cigarettes,
large cigarettes, or small cigars to be
shipped;
(e) The number and total sale price of
large cigars having a sale price of not
more than $235.294 per thousand to be
shipped;
(f) The number of large cigars having
a sale price equal to or more than
$235.294 per thousand to be shipped;
(g) The pounds and ounces of
chewing tobacco or snuff to be shipped;
(h) The pounds and ounces of pipe
tobacco or roll-your-own tobacco to be
shipped;
(i) The number of cigarette papers or
tubes to be shipped;
(j) The amount of the tax to be paid
for each kind of article under this
subpart; and
(k) The name and address of the
consignee in the United States to whom
the products are to be shipped.
(Approved by the Office of Management and
Budget under control number 1513–0108)
5. Section 41.111 is revised to read as
follows:
I
§ 41.111 Verification of bond and
agreement to pay tax.
(a) Verification of bond. Prior to
shipment of tobacco products or
cigarette papers or tubes to the United
States, the manufacturer must verify:
(1) That there is no default in
payment of tax chargeable against the
manufacturer’s bond on TTB F 2986
(5210.12); and
(2) That the amount of the
manufacturer’s bond is sufficient or is in
the maximum penal sum to cover the
tax that will become due on the
shipment.
(b) Agreement to pay tax. The
shipment of tobacco products or
cigarette papers or tubes by the bonded
manufacturer serves as an agreement by
the manufacturer to pay the tax on that
shipment.
I 6. Section 41.121 is revised to read as
follows:
§ 41.121
Amount and account of bond.
(a) Bond amount. Except for the
maximum and minimum amounts
stated in this paragraph, the total
amount of the bond or bonds required
under this subpart must be in an
amount not less than the amount of
unpaid tax chargeable at any one time
against the bond or bonds. The
maximum and minimum amounts of
such bond or bonds are as follows:
Bond
amount
maximum
(in dollars)
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Taxable article
(1) Cigarettes ...................................................................................................................................................................
(2) Any combination of taxable articles ...........................................................................................................................
(3) One kind of taxable article other than cigarettes .......................................................................................................
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15:59 Mar 28, 2008
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250,000
250,000
150,000
Bond
amount
minimum
(in dollars)
1,000
1,000
1,000
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Federal Register / Vol. 73, No. 62 / Monday, March 31, 2008 / Rules and Regulations
(b) Bond account. Where the amount
of a bonded manufacturer’s bond is less
than the maximum amount prescribed
in paragraph (a) of this section, the
bonded manufacturer must maintain an
account reflecting all outstanding taxes
for which the manufacturer’s bond is
chargeable. A manufacturer must debit
that account with the amount of tax that
was agreed to be paid under § 41.111 or
that is otherwise chargeable against the
bond and then must credit the account
for the amount paid on TTB F 5000.25
or other TTB-prescribed document, at
the time it is filed. A manufacturer who
will defer payment of tax for a shipment
of tobacco products or cigarette papers
or tubes under this subpart must have
sufficient credit in this account to cover
the taxes prior to making the shipment
to the United States.
(Approved by the Office of Management and
Budget under control number 1513–0108)
Signed: January 17, 2008.
John J. Manfreda,
Administrator.
Approved: February 27, 2008.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. E8–6513 Filed 3–28–08; 8:45 am]
BILLING CODE 4810–31–P
DEPARTMENT OF HOMELAND
SECURITY
docket [Docket No. USCG–2007–0096]
and are available online at
www.regulations.gov. This material is
also available for inspection or copying
at two locations: the Docket
Management Facility (M30), U.S.
Department of Transportation, West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue, SE.,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays and at
Commander (dpb), Seventh Coast Guard
District, 909 S.E. 1st Avenue, Room 432,
Miami, Florida 33131–3028 between 8
a.m. and 4:30 p.m., Monday through
Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call Mr.
Michael Lieberum, Seventh Coast Guard
District, Bridge Administration Branch,
telephone 305–415–6744. If you have
questions on viewing the docket, call
Renee W. Wright, Program Manager,
Docket Operations, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION:
Regulatory Information
On December 4, 2007, we published
a notice of proposed rulemaking
(NPRM) entitled Drawbridge Operation
Regulations; Gulf Intracoastal
Waterway, mile 113, St. Petersburg
Beach, FL in the Federal Register. 72 FR
68116. We have received no comments
on the proposed rule. No public meeting
was requested, and none was held.
Coast Guard
Background and Purpose
33 CFR Part 117
The Pinellas Bayway Structure ‘‘E’’
(SR 679) Bridge, Gulf Intracoastal
Waterway mile 113, St. Petersburg
Beach, Pinellas County, Florida,
currently opens on signal; except that,
from 9 a.m. to 7 p.m. the draw need
only open on the hour, 20 minutes after
the hour, and 40 minutes after the hour.
The bridge provides vehicular access
into and out of a popular county park.
At the request of Florida State
Representative Frishe’s office, who is
acting on behalf of local citizens, the
Coast Guard is changing this regulation
which will require the Pinellas Bayway
‘‘E’’ Bridge to open on signal, except
that from 7 a.m. to 9 p.m. the bridge will
open on the hour and half-hour. Public
vessels of the United States, tugs with
tows and vessels in distress shall be
allowed to pass at any time.
[Docket No. USCG–2007–0096]
RIN 1625–AA09
Drawbridge Operation Regulation; Gulf
Intracoastal Waterway, Mile 113, St.
Petersburg Beach, FL
Coast Guard, DHS.
Final rule.
AGENCY:
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ACTION:
SUMMARY: The Coast Guard is changing
the operating regulations governing the
Pinellas Bayway Structure ‘‘E’’ (SR 679
Bridge), Gulf Intracoastal Waterway,
mile 113, St. Petersburg Beach, Pinellas
County, Florida. This rule will provide
vehicular traffic relief during heavy
vehicular traffic periods flowing into a
nearby county park and will meet the
reasonable needs of navigation.
DATES: This rule is effective April 30,
2008.
Comments and material
received from the public, as well as
documents indicated in this preamble as
being available in the docket, are part of
ADDRESSES:
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15:59 Mar 28, 2008
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Discussion of Comments and Changes
The Coast Guard received no
comments in response to the notice of
proposed rulemaking (NPRM). For this
reason no changes were made to the
proposals for this final rule.
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Regulatory Evaluation
This rule is not a ‘‘significant
regulatory action’’ under section 3(f) of
Executive Order 12866, Regulatory
Planning and Review, and does not
require an assessment of potential costs
and benefits under section 6(a)(3) of that
Order. The Office of Management and
Budget has not reviewed it under that
Order.
This rule allows for scheduled bridge
openings, and all waterway restrictions
or closure times are published, giving
adequate time for mariners to plan
accordingly.
Small Entities
Under the Regulatory Flexibility Act
(5 U.S.C. 601–612), we have considered
whether this rule would have a
significant economic impact on a
substantial number of small entities.
The term ‘‘small entities’’ comprises
small businesses, not-for-profit
organizations that are independently
owned and operated and are not
dominant in their fields, and
governmental jurisdictions with
populations of less than 50,000.
For the reason stated above, the Coast
Guard certifies under 5 U.S.C. 605(b)
that this rule will not have a significant
economic impact on a substantial
number of small entities.
Assistance for Small Entities
Under section 213(a) of the Small
Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104–121),
we offered to assist small entities in
understanding the rule so that they
could better evaluate its effects on them
and participate in the rulemaking
process.
Small businesses may send comments
on the actions of Federal employees
who enforce, or otherwise determine
compliance with, Federal regulations to
the Small Business and Agriculture
Regulatory Enforcement Ombudsman
and the Regional Small Business
Regulatory Fairness Boards. The
Ombudsman evaluates these actions
annually and rates each agency’s
responsiveness to small business. If you
wish to comment on actions by
employees of the Coast Guard, call 1–
888–REG–FAIR (1–888–734–3247). The
Coast Guard will not retaliate against
small entities that question or complain
about the rule or any policy or action of
the Coast Guard.
Collection of Information
This rule calls for no new collection
of information under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
3520).
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]]>Agencies
[Federal Register Volume 73, Number 62 (Monday, March 31, 2008)]
[Rules and Regulations]
[Pages 16755-16758]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-6513]
=======================================================================
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 41
[T.D. TTB-68; Re: T.D. ATF-444 and Notice No. 912]
RIN 1513-AB38
Puerto Rican Tobacco Products and Cigarette Papers and Tubes
Shipped From Puerto Rico to the United States (2007R-368P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule (Treasury decision).
-----------------------------------------------------------------------
SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau is adopting as a
final rule, with some clarifying changes and editorial corrections, the
temporary regulations set forth in T.D. ATF-444. These temporary
regulations eliminated the onsite preshipment inspection of, and the
requirement to complete several ATF forms for, shipments to the United
States of tobacco products and cigarette papers and tubes manufactured
in Puerto Rico.
DATES: Effective Date: March 31, 2008.
FOR FURTHER INFORMATION CONTACT: Amy R. Greenberg, Regulations and
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
Street, NW., Suite 200E, Washington, DC 20220; telephone 202-927-8210;
or e-mail Amy.Greenberg@ttb.gov.
SUPPLEMENTARY INFORMATION:
Background
Chapter 52 of the Internal Revenue Code of 1986 (IRC) pertains to
the Federal excise tax on tobacco products and cigarette papers and
tubes. Section 5701 of the IRC (26 U.S.C. 5701) imposes a tax on such
products manufactured in, or imported into, the United States. Section
7652(a) of the IRC (26 U.S.C. 7652(a)) imposes the same tax, with
certain exceptions not pertinent here, on articles of merchandise of
Puerto Rican manufacture coming into the United States and withdrawn
for consumption or sale. The Alcohol and Tobacco Tax and Trade Bureau
(TTB) is responsible for administering the provisions of chapter 52 and
section 7652(a) of the IRC as they pertain to the tax on tobacco
products and cigarette papers and tubes, including promulgating
regulations concerning payment and collection of the tax and other
requirements that protect the revenue. Prior to January 24, 2003, our
predecessor agency, the Bureau of Alcohol, Tobacco and Firearms (ATF)
administered these regulations.
On March 8, 2001, ATF published in the Federal Register (66 FR
13849) a temporary rule, T.D. ATF-444, amending the regulations in 27
CFR part 275 to eliminate certain regulatory requirements related to
the shipment of tobacco products and cigarette papers and tubes of
Puerto Rican manufacture from Puerto Rico to the United States.
Specifically, ATF amended Sec. Sec. 275.105, 275.106, 275.110, and
275.111 to eliminate the requirement that persons who ship tobacco
products and cigarette papers and tubes of Puerto Rican manufacture
from Puerto Rico to the United States notify ATF prior to the shipment,
and to eliminate the requirements that an ATF officer: (1) Inspect each
shipment of such articles; (2) certify that the amount of tax on the
articles has been calculated correctly; and (3) release each shipment.
The amended regulations set forth recordkeeping requirements in place
of the former processes of notification, physical inspection,
certification, and release. Under the temporary rule, persons who ship
Puerto Rican tobacco products and cigarette papers and tubes to the
United States must keep and maintain records to show that the amount of
tax is correctly calculated, paid (where applicable), and recorded for
audit and examination purposes.
The temporary rule amendments to Sec. Sec. 275.106, 275.110, and
275.111 also eliminated the requirements for the completion of four
specific forms. Two forms, ATF forms 2987 (5210.8) and 3075 (5200.9),
were required to be submitted to ATF by the company shipping the
products to the United States, and contained information readily
available from common commercial records. The elimination of these
forms was intended to relieve the taxpayer of a duplicative
recordkeeping requirement. The other two forms, ATF forms 2989 and 3074
(5200.6), were certificates which were prepared by ATF officers and
affixed to the outside
[[Page 16756]]
of each shipping container, affirming that the appropriate tax had been
paid. These forms were eliminated because ATF determined that they were
not necessary to protect the Federal excise tax revenue due on tobacco
products and cigarette papers and tubes.
T.D. ATF-444 also included some technical corrections to the
regulations, including updating the delegation order numbers appearing
in Sec. Sec. 275.11 and 275.29.
On the same day that T.D. ATF-444 was published, ATF also published
in the Federal Register (66 FR 13864), a notice of proposed rulemaking
(NPRM), (Notice No. 912) soliciting comments on the regulatory
amendments contained in T.D. ATF-444. ATF did not receive any comments
in response to Notice No. 912 by the close of the public comment
period.
Since the publication of T.D. ATF-444, ATF and then TTB continued
to conduct audits of the commercial records of companies that ship
Puerto Rican tobacco products or cigarette papers and tubes from Puerto
Rico to the United States. These audits have demonstrated that the
elimination of the required inspection prior to shipment, the
elimination of certain forms, and the replacement of other forms with
the requirement to maintain records, have allowed TTB and the regulated
industry members to avoid unnecessary administrative burdens without
creating any jeopardy to the revenue.
Subsequent Regulatory Changes
Following the publication of T.D. ATF-444, 27 CFR part 275 was
recodified as 27 CFR part 41 pursuant to T.D. TTB-16, published in the
Federal Register (69 FR 52421) on August 26, 2004. Thus, all provisions
of the temporary rule identified as sections in part 275 appear in this
final rule as sections in part 41.
Adoption of Final Rule
Based on the background information provided above, TTB has
determined that the temporary regulations published in T.D. ATF-444,
recodified and updated pursuant to T.D. TTB-16, should be adopted as a
final rule with only minor organizational, plain language, and
editorial changes. We have made such changes to Sec. Sec. 41.105,
41.106, 41.110, 41.111, and 41.121 to enhance their clarity and
readability without substantively affecting their texts. We have
modified the section headings to Sec. Sec. 41.106 and 41.111 to more
clearly reflect the content of these provisions. We have also updated
the Office of Management and Budget (OMB) control numbers for
Sec. Sec. 41.105, 41.106, 41.110, and 41.121.
Inapplicability of Delayed Effective Date
Pursuant to the provisions of 5 U.S.C. 553(d)(1) and (d)(3), we are
issuing these regulations without a delayed effective date. This rule
finalizes regulations which provided relief from regulatory
restrictions by eliminating several administrative burdens on industry
members associated with onsite preshipment inspection of, and the
requirement to complete several ATF forms for, shipments to the United
States of tobacco products and cigarette papers and tubes manufactured
in Puerto Rico. By eliminating these administrative burdens, these
final regulations fit within the meaning of the relief from a
restriction standard in section 553(d)(1). Furthermore, TTB has
determined that good cause exists in accordance with section 553(d)(3)
to finalize these regulations immediately, and without delayed
effective date, in order to continue the alleviation of these
administrative burdens on the industry.
Regulatory Flexibility Act
Pursuant to the requirements of the Regulatory Flexibility Act (5
U.S.C. chapter 6), we certify that these regulations will not have a
significant economic impact on a substantial number of small entities.
These regulations relieve and simplify certain administrative
obligations. Primarily, the regulations replace onsite, preshipment
inspections with less burdensome, periodic recordkeeping and audit
requirements. The regulations also eliminate four reporting forms in
further reducing administrative and recordkeeping burdens. Accordingly,
these regulations will not have a significant economic impact on a
substantial number of small entities and a regulatory flexibility
analysis is not required. Pursuant to 26 U.S.C. 7805(f), the temporary
regulation was submitted to the Chief Counsel for Advocacy of the Small
Business Administration for comment on its impact on small businesses,
and we received no comments.
Executive Order 12866
It has been determined that this rule is not a significant
regulatory action as defined by Executive Order 12866. Therefore, a
regulatory assessment is not required.
Paperwork Reduction Act
The collections of information in the regulations contained in this
final rule have been previously reviewed and approved by Office of
Management and Budget (OMB) in accordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3504(h)) and assigned control numbers 1513-0083,
1513-0090, and 1513-0108. An agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless it displays a valid control number assigned by OMB. Although
sections of the regulations covered by these approvals are amended for
clarity, this final rule imposes no new or revised collection of
information, and does not change the reporting or recordkeeping burden.
Comments concerning suggestions for reducing the burden of the
collections of information should be directed to Mary A. Wood, Alcohol
and Tobacco Tax and Trade Bureau, at any of these addresses:
P.O. Box 14412, Washington, DC 20044-4412;
202-927-8525 (facsimile); or
formcomments@ttb.gov (e-mail).
Drafting Information
Amy R. Greenberg of the Regulations and Rulings Division, Alcohol
and Tobacco Tax and Trade Bureau, drafted this document.
List of Subjects in 27 CFR Part 41
Administrative practice and procedure, Authority delegations,
Cigarette papers and tubes, Claims, Electronic fund transfer, Customs
duties and inspection, Excise taxes, Imports, Labeling, Packaging and
containers, Penalties, Reporting requirements, Seizures and
forfeitures, Surety bonds, Tobacco products, U.S. possessions,
Warehouses.
Amendments to the Regulations
0
Accordingly, for the reasons set forth in the preamble, the temporary
rule published on March 8, 2001, at 66 FR 13849, is adopted as a final
rule with the changes as discussed above and set forth below.
PART 41--IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND
TUBES
0
1. The authority citation for part 41 continues to read as follows:
Authority: 18 U.S.C. 2342; 26 U.S.C. 5701, 5703, 5704, 5705,
5708, 5712, 5713, 5721, 5722, 5723, 5741, 5754, 5761, 5762, 5763,
6301, 6302, 6313, 6404, 7101, 7212, 7342, 7606, 7651, 7652, 7805; 31
U.S.C. 9301, 9303, 9304, 9306.
0
2. Section 41.105 is revised to read as follows:
Sec. 41.105 Prepayment of tax.
To prepay, in Puerto Rico, the internal revenue tax imposed by 26
U.S.C.
[[Page 16757]]
7652(a) on tobacco products and cigarette papers and tubes of Puerto
Rican manufacture to be shipped to the United States, the shipper must
file, or cause to be filed, a tax return, TTB F 5000.25, with full
remittance of the tax which will become due on those products.
(Approved by the Office of Management and Budget under control
number 1513-0090)
0
3. Section 41.106 is revised to read as follows:
Sec. 41.106 Record of shipment by taxpayer.
(a) Shipments other than noncommercial mail shipments. The taxpayer
must ensure that the tax has been prepaid on the tobacco products and
cigarette papers and tubes in each shipment. The taxpayer must identify
the tobacco products or cigarette papers or tubes by including on the
bill of lading or similar record accompanying the shipment the
following information:
(1) The marks and numbers on the shipping containers;
(2) The number of containers to be shipped;
(3) The kind of taxable article(s) to be shipped and the rate of
tax applicable to each kind of article, as specified in Sec. Sec.
41.30 through 41.35;
(4) The number of small cigarettes, large cigarettes, or small
cigars to be shipped;
(5) The number and total sale price of large cigars having a sale
price of not more than $235.294 per thousand to be shipped;
(6) The number of large cigars having a sale price equal to or more
than $235.294 per thousand to be shipped;
(7) The pounds and ounces of chewing tobacco or snuff to be
shipped;
(8) The pounds and ounces of pipe tobacco or roll-your-own tobacco
to be shipped;
(9) The number of cigarette papers or tubes to be shipped;
(10) The amount of the tax paid for each kind of article under this
subpart;
(11) The name and address of the consignee in the United States to
whom the products are to be shipped; and
(12) A notation identifying the particular TTB F 5000.25 by which
the taxes were prepaid.
(b) Noncommercial mail shipments. Noncommercial mail shipments of
tobacco products and cigarette papers and tubes to the United States
are exempt from the requirements of paragraph (a) of this section,
except that the taxpayer must provide a copy of the TTB F 5000.25 upon
the request of an appropriate TTB officer.
(Approved by the Office of Management and Budget under control
number 1513-0108)
0
4. Section 41.110 is revised to read as follows:
Sec. 41.110 Record of tax computation and shipment by bonded
manufacturer under deferred taxpayment.
Where tobacco products or cigarette papers or tubes are to be
shipped to the United States with deferred taxpayment, the bonded
manufacturer must calculate the tax prior to shipment. The tax
calculation must conform to the information on the bill of lading or a
similar record accompanying the shipment, and the date of completing
the bill of lading or similar record accompanying the shipment will be
treated as the date of computation of the tax. Tobacco products or
cigarette papers or tubes may be shipped to the United States in
accordance with the provisions of this section only after computation
of the tax. The bill of lading or similar record accompanying the
shipment must include the following information:
(a) The marks and numbers on the shipping containers;
(b) The number of containers to be shipped;
(c) The kind of taxable article(s) to be shipped and the rate of
tax applicable to each kind of article, as specified in Sec. Sec.
41.30 through 41.35;
(d) The number of small cigarettes, large cigarettes, or small
cigars to be shipped;
(e) The number and total sale price of large cigars having a sale
price of not more than $235.294 per thousand to be shipped;
(f) The number of large cigars having a sale price equal to or more
than $235.294 per thousand to be shipped;
(g) The pounds and ounces of chewing tobacco or snuff to be
shipped;
(h) The pounds and ounces of pipe tobacco or roll-your-own tobacco
to be shipped;
(i) The number of cigarette papers or tubes to be shipped;
(j) The amount of the tax to be paid for each kind of article under
this subpart; and
(k) The name and address of the consignee in the United States to
whom the products are to be shipped.
(Approved by the Office of Management and Budget under control
number 1513-0108)
0
5. Section 41.111 is revised to read as follows:
Sec. 41.111 Verification of bond and agreement to pay tax.
(a) Verification of bond. Prior to shipment of tobacco products or
cigarette papers or tubes to the United States, the manufacturer must
verify:
(1) That there is no default in payment of tax chargeable against
the manufacturer's bond on TTB F 2986 (5210.12); and
(2) That the amount of the manufacturer's bond is sufficient or is
in the maximum penal sum to cover the tax that will become due on the
shipment.
(b) Agreement to pay tax. The shipment of tobacco products or
cigarette papers or tubes by the bonded manufacturer serves as an
agreement by the manufacturer to pay the tax on that shipment.
0
6. Section 41.121 is revised to read as follows:
Sec. 41.121 Amount and account of bond.
(a) Bond amount. Except for the maximum and minimum amounts stated
in this paragraph, the total amount of the bond or bonds required under
this subpart must be in an amount not less than the amount of unpaid
tax chargeable at any one time against the bond or bonds. The maximum
and minimum amounts of such bond or bonds are as follows:
------------------------------------------------------------------------
Bond amount
Bond amount minimum
Taxable article maximum (in (in
dollars) dollars)
------------------------------------------------------------------------
(1) Cigarettes................................ 250,000 1,000
(2) Any combination of taxable articles....... 250,000 1,000
(3) One kind of taxable article other than 150,000 1,000
cigarettes...................................
------------------------------------------------------------------------
[[Page 16758]]
(b) Bond account. Where the amount of a bonded manufacturer's bond
is less than the maximum amount prescribed in paragraph (a) of this
section, the bonded manufacturer must maintain an account reflecting
all outstanding taxes for which the manufacturer's bond is chargeable.
A manufacturer must debit that account with the amount of tax that was
agreed to be paid under Sec. 41.111 or that is otherwise chargeable
against the bond and then must credit the account for the amount paid
on TTB F 5000.25 or other TTB-prescribed document, at the time it is
filed. A manufacturer who will defer payment of tax for a shipment of
tobacco products or cigarette papers or tubes under this subpart must
have sufficient credit in this account to cover the taxes prior to
making the shipment to the United States.
(Approved by the Office of Management and Budget under control
number 1513-0108)
Signed: January 17, 2008.
John J. Manfreda,
Administrator.
Approved: February 27, 2008.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. E8-6513 Filed 3-28-08; 8:45 am]
BILLING CODE 4810-31-P
