Liquor Dealer Recordkeeping and Registration, and Repeal of Certain Special (Occupational) Taxes, 37394-37425 [E9-17177]

Agencies

• Alcohol and Tobacco Tax and Trade Bureau
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 74, Number 143 (Tuesday, July 28, 2009)]
[Rules and Regulations]
[Pages 37394-37425]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-17177]



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Part III





Department of the Treasury





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Alcohol and Tobacco Tax and Trade Bureau



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27 CFR Parts 17, 19, 20, et al.



Liquor Dealer Recordkeeping and Registration, and Repeal of Certain 
Special (Occupational) Taxes; Temporary Rule and Proposed Rule

Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Rules 
and Regulations

[[Page 37394]]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 17, 19, 20, 22, 24, 25, 26, 27, 28, 31, 40, 44, 46, 
and 70

[Docket No. TTB-2009-0003; T.D. TTB-79; Re: Notice No. 96]
RIN 1513-AB63


Liquor Dealer Recordkeeping and Registration, and Repeal of 
Certain Special (Occupational) Taxes

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Temporary rule; Treasury decision.

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SUMMARY: This temporary rule amends the regulations administered by the 
Alcohol and Tobacco Tax and Trade Bureau, to reflect the repeal of 
certain special (occupational) taxes by section 11125 of the Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users. The repeal involves such taxes on alcohol beverage producers 
and dealers, tax-free alcohol users, denatured spirits users and 
dealers, and persons claiming drawback for the manufacture of 
nonbeverage alcoholic products. In place of the special (occupational) 
tax requirement, the amended law requires recordkeeping and 
registration by dealers in distilled spirits, wines, and beer, and by 
manufacturers of nonbeverage products who claim drawback. We also are 
soliciting comments from all interested parties on these regulatory 
amendments through a notice of proposed rulemaking published elsewhere 
in this issue of the Federal Register.

DATES: Effective Dates: This temporary rule is effective July 28, 2009 
through July 30, 2012.

FOR FURTHER INFORMATION CONTACT: For questions concerning registration 
or occupational tax filing procedures, contact Jackie Feinauer, 
National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau (800-
937-8864); for other questions concerning this document, contact Steve 
Simon, Regulations and Rulings Division, Alcohol and Tobacco Tax and 
Trade Bureau (202-453-2164).

SUPPLEMENTARY INFORMATION: 

Background

    On August 10, 2005, the President signed into law the ``Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users,'' Public Law 109-59, 119 Stat. 1953 (the Act). Section 11125 
of the Act amended certain provisions of the Internal Revenue Code of 
1986 (IRC) (26 U.S.C.) to repeal, effective July 1, 2008, the 
provisions covering special (occupational) taxes (also referred to in 
this document as SOT or special taxes) on:
     Producers and dealers of alcohol beverages,
     Manufacturers of nonbeverage products,
     Users of tax-free alcohol, and
     Users and dealers of specially denatured spirits.
    Although section 11125 repealed the tax for these occupations, it 
did not remove the recordkeeping and registration requirements for 
dealers in alcohol beverages and for manufacturers of nonbeverage 
products. Under section 11125, all persons who sell distilled spirits, 
wine, or beer are dealers. As explained below, this covers only those 
dealers who sell alcohol products fit for beverage use.
    The IRC chapter 51 and 52 provisions referred to above, and the 
regulations promulgated thereunder and contained in title 27 of the 
Code of Federal Regulations, are administered by the Alcohol and 
Tobacco Tax and Trade Bureau (TTB).
    In order to remove the special (occupational) taxes on producers 
and marketers of alcohol beverages, paragraph (a) of section 11125 
repealed the following subparts and sections of IRC chapter 51, 
subchapter A, part II:
     Subpart A relating to proprietors of distilled spirits 
plants, bonded wine cellars, etc. (26 U.S.C. 5081);
     Subpart B relating to brewers (26 U.S.C. 5091-5093);
     Subpart D relating to wholesale dealers, except for 
sections 5114 and 5116 (26 U.S.C. 5111-5113 and 5117);
     Subpart E relating to retail dealers, except for section 
5124 (26 U.S.C. 5121-5123 and 5125); and
     Subpart G relating to general provisions, except for 
sections 5142, 5143, 5145, and 5146 (26 U.S.C. 5141 and 5147-5149).
    Section 11125(a) also did away with the special (occupational) tax 
on nonbeverage drawback claimants by removing from 26 U.S.C. 5131 the 
reference to annual payment of a special tax. Finally, section 11125(a) 
did away with the special (occupational) tax on industrial use of 
distilled spirits by repealing 26 U.S.C. 5276.
    Paragraph (b) of section 11125 made a number of conforming 
amendments to IRC chapter 51, subchapter A, part II. These amendments 
involved:
     Redesignating subpart C as subpart A;
     Redesignating subpart F as subpart B (with sections 5131 
through 5134 redesignated as sections 5111 through 5114);
     Removing the special tax rate provision from redesignated 
section 5111; and
     Adding new subparts C (containing new sections 5121 
through 5124) and D (containing new sections 5131 and 5132). Note: A 
technical error in the designation of section 5121 was corrected by 
section 11(a)(31) of the Tax Technical Corrections Act of 2007 (Pub. L. 
110-172, 121 Stat. 2487).
    New sections 5121, 5122, and 5123 were obtained by redesignating 
sections 5114, 5124, and 5146, respectively. The text of former section 
5112 is included in new section 5121, and the text of former section 
5122 is included in new section 5122. New section 5124, titled 
``Registration by Dealers,'' is patterned after existing section 
7011(a). New section 5131 was obtained by redesignating section 5116, 
and new section 5132 contains, with a change, the text of former 
section 5117.
    Paragraph (b) of section 11125 made additional conforming 
amendments elsewhere in the IRC, of which we note the following:
     Chapter 51, subchapter J, part V (section 5691) was 
repealed (although the terms of section 5691(b) were included in new 
section 5121(c)(4)); and
     Sections 5142, 5143, and 5145 were redesignated as 
sections 5732, 5733, and 5734 in subchapter D of chapter 52, relating 
to the special tax on tobacco occupations, which remains in effect.

Temporary Rule

    Based on the July 1, 2008, effective date of the repeal of certain 
special (occupational) taxes, as described above, TTB believes that the 
proper administration of the repeal and the related changes to 
recordkeeping and registration requirements necessitates immediate 
adoption of the implementing regulations as a temporary rule.

Public Participation

    To submit comments on the regulatory amendments contained in this 
temporary rule, please refer to the related notice of proposed 
rulemaking on this subject published elsewhere in this issue of the 
Federal Register.

Basic Interpretative Considerations

    Based on a careful reading of the amendments set out in section 
11125 of the Act and resulting statutory language, TTB has applied the 
following considerations in preparing the regulatory changes to title 
27 of the Code of Federal Regulations (27 CFR) set forth in this 
document:

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    1. Application. Consistent with the Government's longstanding 
interpretation of the IRC, liquor dealer recordkeeping and registration 
requirements apply only to dealers in alcohol fit for beverage use. 
See, e.g., 26 CFR 194.21 (1960 ed.). ``Alcohol fit for beverage use'' 
not only includes alcohol beverages but also includes alcoholic 
products for industrial use, unless the products are unfit for beverage 
use.
    2. Frequency of registration. SOT for dealers was an annual tax, 
and filing of the return and registration was required by regulation on 
an annual basis. However, the IRC does not, and never did, require 
annual dealer registration, only that such dealers must ``register with 
the Secretary.'' We see no reason to continue the annual filing 
requirement in the absence of annual collection of a tax. Instead, the 
regulatory changes in this document lessen the dealers' burden by 
requiring registration upon entering business as a dealer, with 
subsequent registrations required only for reporting changes in certain 
information and upon termination of business. On the other hand, 
Manufacturer of Nonbeverage Products (MNBP) drawback claimant 
registration is required annually because of the wording of 26 U.S.C. 
5112. For persons filing MNBP drawback claims under the IRC, the first 
claim for the calendar year will satisfy the registration requirement 
if the claim contains the required registration information; subsequent 
claims with updated information will be considered amended 
registrations.
    3. Registration of proprietors of distilled spirits plants, bonded 
wine cellars, etc. Since the definition of ``dealer'' in new section 
5121(c)(4) of the IRC refers to ``any person who sells, or offers for 
sale, any distilled spirits, wines, or beer,'' the requirements for 
recordkeeping and registration by dealers will also apply to 
proprietors of distilled spirits plants, bonded wine premises, taxpaid 
wine bottling houses, and breweries, if those proprietors sell their 
products or offer them for sale. Although these persons previously were 
generally exempted by 26 U.S.C. 5113 from the registration requirements 
applicable to liquor and beer dealers, this situation changed when 
section 11125 of the Act repealed section 5113 of the IRC and thereby 
deleted the exemption under section 5113.
    In order to minimize the resulting regulatory burden, TTB has 
determined that proprietors of distilled spirits plants, bonded wine 
premises, and taxpaid wine bottling houses who have qualified under the 
IRC, and brewers who hold approved brewers' notices under the IRC, will 
be deemed to have registered as dealers. In other words, the 
qualification and brewer's notice will serve as the registration 
required by section 11125. As part of the qualification or notice 
process, the proprietor must file and maintain in a current status all 
the information required for dealer registration under section 11125. 
Required notices of changes to the information required for IRC 
qualification or the brewer's notice will be considered as amendments 
to the dealer registration, and notice that the proprietor is going out 
of business will terminate the dealer registration as well.
    4. Proprietors will be registered as wholesale liquor dealers. 
Proprietors of distilled spirits plants, bonded wine premises, and 
taxpaid wine bottling houses qualified under the IRC, and brewers who 
hold approved brewers notices under the IRC, will be treated as 
wholesale liquor dealers for registration purposes. This will allow the 
proprietor to sell distilled spirits, wine or beer at wholesale or 
retail from the covered location. For proprietors who have retail 
operations such as taverns on brewery premises, or who run wholesale or 
import operations from their premises and sell alcohol beverages other 
than the ones they produce, this interpretation will give maximum 
registration flexibility. Because industrial distilled spirits plants 
are qualified under the IRC, they will be considered as having 
registered as a wholesale liquor dealer for sales of undenatured 
alcohol. Even though a proprietor who makes no sales of alcohol fit for 
beverage use is not required to register, we believe this approach 
imposes the least overall burden. Since there is no cost to the 
proprietor, there is no reason to make a distinction in the 
registration.
    5. Persons who must register on Form 5630.5d. Persons required to 
hold a basic permit under the Federal Alcohol Administration (FAA) Act 
as wholesalers or importers are considered dealers under section 11125, 
and so must file a registration on Form 5630.5d, as must retail 
dealers. This registration will remain in effect as long as the 
required information remains the same. Changes must be reported by 
filing of an amended Form 5630.5d if any of the required information 
changes, and the registrations must be terminated when covered 
operations cease. States, localities, and the District of Columbia are 
required to register only once as a wholesaler and once as a retailer 
in order to cover all operations within the jurisdiction in question.
    6. Records. Required records for wholesale and retail liquor and 
beer dealers are specified in 27 CFR part 31 and are not significantly 
changed by this document. Breweries and proprietors of distilled 
spirits plants, bonded wine premises, and taxpaid wine bottling houses, 
who keep required records under the applicable IRC regulations, need 
not generate additional records as dealers for the same transactions.
    7. Transition to new rules. For persons who were required to 
register and report changes on TTB Form 5630.5 during the SOT 
suspension period (July 1, 2005, through June 30, 2008), any 
registration filed after January 1, 2007, will constitute a valid 
registration required on or after July 1, 2008, and will continue in 
effect until the required registration information changes or 
operations are terminated. Therefore, such existing registrants will 
not have to re-register to comply with the new registration 
requirements. However, existing businesses that have not registered on 
or after January 1, 2007, must file a one-time registration on or 
before July 1, 2009, using TTB Form 5630.5d. The reasons for these 
dates are as follows: (1) Technically, the last registration required 
under the regulations for the 3-year SOT suspension was due on or 
before July 1, 2007. Most registrants would probably have filed before 
the deadline, but few, if any, would have filed before January 1, 2007; 
and (2) since this document was not published before July 1, 2008, the 
first registration under these new regulations--except for new 
businesses--will be due July 1, 2009. This transition rule applies to 
alcohol beverage dealers, breweries, and proprietors of distilled 
spirits plants, bonded wine premises, and taxpaid wine bottling houses, 
but not to MNBP drawback claimants. As noted above, MNBPs will be 
considered registered when they file the first claim for each year.
    8. Effective date. The amendments made by section 11125 were 
effective on July 1, 2008. However, these regulations take effect on 
the date of their publication in the Federal Register. For the period 
between July 1, 2008, and the effective date of the temporary 
regulations, TTB will not apply or enforce any regulatory provision 
that is clearly inconsistent with current law, since statutory 
provisions always take precedence over conflicting regulations. On the 
other hand, any regulations that are not in conflict with current law 
(for example, the prior recordkeeping requirements) would remain in 
effect until superseded by the new temporary regulations. Further, 
section 11125

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specifies, in paragraph (c), that its amendments ``shall not apply to 
taxes imposed for periods before such date [July 1, 2008].'' Therefore, 
persons who failed to pay special (occupational) tax when it was in 
force are not excused from their prior liability by the repeal of this 
tax.
    9. Employer identification number. Section 6109(a)(1) of the IRC 
(26 U.S.C. 6109(a)(1)) states: ``Any person required under the 
authority of this title to make a return, statement, or other document 
shall include in such return, statement, or other document such 
identifying number as may be prescribed for securing proper 
identification of such person.'' In accordance with this provision and 
subsection (d) of section 6109, the regulations promulgated by this 
document require inclusion of the employer identification number (EIN) 
on registrations for alcohol dealers and manufacturers of nonbeverage 
products. This requirement is unchanged from prior regulations.
    Section 6723 of the IRC imposes a penalty of $50 for each ``failure 
by any person to comply with a specified information reporting 
requirement on or before the time prescribed therefor.'' The definition 
of ``specified information reporting requirement'' in 26 U.S.C. 
6724(d)(3) includes ``any requirement contained in the regulations 
prescribed under section 6109 that a person--(i) include his TIN 
[taxpayer identification number; see 26 U.S.C. 7701(a)(41)] on any 
return, statement, or other document * * *.'' The requirement, imposed 
by these regulations, to include the EIN on the registration is such an 
information reporting requirement. Because a person who does not submit 
a registration has failed to include his EIN on the registration, as 
required, the $50 penalty of 26 U.S.C. 6723 applies. Per 26 U.S.C. 
6724(a), this penalty is not imposed when there is reasonable cause for 
the failure. These principles are reflected in the new temporary 
regulations at 27 CFR 31.14.
    10. Confidentiality of registration information. Because 
registration is required under new section 5112 or 5124 of the IRC, the 
submitted information is subject to the confidentiality and disclosure 
requirements of section 6103 of the IRC, even though most alcohol 
beverage dealers are no longer TTB taxpayers. Accordingly, such 
registration is held to be an ``information return'' within the intent 
of 26 U.S.C. 6103. This holding is reflected in the new temporary 
regulations at 27 CFR 31.15, set forth below.
    11. Tobacco. Section 11125 did not repeal the special 
(occupational) tax on any tobacco occupations; therefore, manufacturers 
of tobacco products, manufacturers of cigarette papers and tubes, and 
tobacco export warehouse proprietors must continue to register and pay 
the special (occupational) tax every year.

Discussion of Specific Regulatory Changes

Part 17--Drawback on Taxpaid Distilled Spirits Used in Manufacturing 
Nonbeverage Products

    The regulations in 27 CFR part 17 govern claims for drawback on 
taxpaid distilled spirits that are used in manufacturing nonbeverage 
products. Several subparts and sections within part 17 are amended in 
this document to conform with the changes made by section 11125 of the 
Act.
    Subpart C Revised. Subpart C has been substantially amended by 
removing all sections relating to special tax and redesignating the 
subpart as ``Subpart C--Registration''. As noted above, effective July 
1, 2008, IRC section 5132 was redesignated as section 5112. As 
redesignated, this section continues to require that every person who 
claims drawback for the manufacture of nonbeverage products must 
register annually as a nonbeverage domestic drawback claimant. Section 
5112 does not specify either how registration will be accomplished or 
the items of information that must be provided as part of the 
registration process. However, as discussed above, TTB has decided that 
registration will be accomplished when the claimant submits a claim for 
drawback along with the supporting information that must be submitted 
with the claim. Thus, the filing of the claim will satisfy the 
requirement to register.
    The revised subpart now includes a new Sec.  17.21 that explains 
this registration of nonbeverage drawback claimants. The revised 
subpart also contains two new sections (Sec. Sec.  17.22 and 17.23) 
relating to the use of, and application for, the employer 
identification number.
    Subpart D Removed. Subpart D--Special Tax Stamps, consisting of 
Sec. Sec.  17.51 through 17.93 and covering the issuance of special tax 
stamps, their subsequent amendment, and refunds of special tax, has 
been removed and reserved.
    Location of Records and Recovery Operations. Several sections 
relating to records (Sec. Sec.  17.161, 17.168, and 17.171) have been 
amended to delete references to the premises covered by the special tax 
stamp.
    Miscellaneous Amendments. In addition to the above amendments, TTB 
has made several minor amendments to the regulations in part 17 by 
removing references to special tax within various sections. We also 
amended several legal citations within the regulations to reflect the 
redesignation of certain sections of law effective July 1, 2008. 
Finally, Sec.  17.4 is revised to reflect the OMB control numbers that 
were assigned when the Alcohol and Tobacco Tax and Trade Bureau was 
created and to remove references to sections that have been removed 
from part 17.

Part 19--Distilled Spirits Plants

    The regulations in 27 CFR part 19 govern operations at distilled 
spirits plants. Several subparts and sections within part 19 have been 
revised or otherwise amended.
    Subpart Ca--Dealer Registration. Subpart Ca has been revised in 
order to remove all references to special tax, and the subpart heading 
has been revised to read ``Dealer Registration and Recordkeeping''. 
Effective July 1, 2008, every proprietor of a distilled spirits plant 
who sells or offers for sale any distilled spirits, wines, or beer must 
register as a dealer. As noted above, TTB has determined that 
proprietors who have registered the distilled spirits plant under the 
qualification provisions of part 19 will be deemed to have registered 
as wholesale liquor dealers at the distilled spirits plant premises. 
The revised subpart Ca includes a new Sec.  19.50 which explains the 
registration process for proprietors. In addition, the revised subpart 
contains a new section on amending the registration (Sec.  19.51) and a 
new section on dealer records (Sec.  19.52).
    Dealer Recordkeeping. Although distilled spirits plants proprietors 
who sell, or offer for sale, distilled spirits fit for beverage use 
will be subject to the recordkeeping requirements of 26 U.S.C. 5121, 
new Sec.  19.52 provides that the records required by subpart W of part 
19 will satisfy those requirements, except where the distilled spirits 
plant engages in dealer operations not already covered by the 
recordkeeping requirements of part 19.
    Alcohol Fuel Plants. In general, alcohol fuel plants would not be 
subject to the requirements applicable to alcohol beverage dealers, 
because they generally do not produce and sell alcohol fit for beverage 
use. However, an alcohol fuel plant that sells distilled spirits that 
have not been rendered unfit for beverage use (for transfer in bond to 
a distilled spirits plant or another alcohol fuel plant) would meet the 
definition of a ``dealer.'' Therefore,

[[Page 37397]]

Sec.  19.906 is revised to clarify that such an alcohol fuel plant is 
subject to the provisions of revised subpart Ca.
    Miscellaneous Amendments. In addition to the above amendments, TTB 
has made several minor amendments to the regulations in part 19 to 
remove references to special tax in various sections. We also amended 
several legal citations within the regulations to reflect the 
redesignation of certain sections of law that went into effect on July 
1, 2008. For example, a reference to ``26 U.S.C. 5131-5134'' in the 
definition of ``alcoholic flavoring material'' of Sec.  19.11 has been 
replaced with a reference to ``26 U.S.C. 5111-5114''.

Part 20--Distribution and Use of Denatured Alcohol and Rum

    The regulations in 27 CFR part 20 govern the distribution and use 
of denatured alcohol and rum. Effective July 1, 2008, section 
11125(a)(3) of the Act repealed 26 U.S.C. 5276, which imposed a special 
tax on dealers and users of denatured alcohol and rum. Accordingly, in 
part 20, subpart Ca--Special (Occupational) Taxes has been removed and 
reserved. TTB also notes in this regard that dealers and users of 
denatured alcohol and rum who operate within the requirements of the 
law and regulations, selling denatured products for nonbeverage 
purposes only, are not considered to be ``dealers'' under the IRC and 
therefore will not be required to register as such.

Part 22--Distribution and Use of Tax-Free Alcohol

    The regulations in 27 CFR part 22 govern the distribution and use 
of tax-free alcohol. As in the case of part 20 discussed above, the 
repeal of 26 U.S.C. 5276, which imposed a special tax on users of tax-
free alcohol, necessitates the removal from part 22 of subpart Ca--
Special (Occupational) Taxes. Similarly, users of tax-free alcohol are 
generally not considered to be ``dealers'' under the IRC and therefore 
will not be required to register as such. However, this document also 
amends Sec.  22.102 to provide that any person who sells tax-free 
alcohol will become a dealer and therefore will be subject to the 
provisions of part 31 (since tax-free alcohol is fit for beverage use).

Part 24--Wine

    The regulations in 27 CFR part 24 govern operations at bonded wine 
premises and taxpaid wine bottling houses.
    Dealer Registration. As a result of the changes to the IRC made by 
section 11125 of the Act, effective July 1, 2008, every proprietor of 
bonded wine premises and every proprietor of a taxpaid wine bottling 
house who sells or offers for sale any distilled spirits, wines, or 
beer must register as a dealer. As noted above, TTB has determined that 
proprietors who have qualified as a bonded wine premises or taxpaid 
wine bottling house under part 24 will be deemed to have registered as 
a wholesale liquor dealer at those premises. Section 24.52 is revised 
to explain the registration process for these proprietors.
    Dealer Recordkeeping. Although proprietors of wine premises who 
sell beverage wine (or who offer it for sale) will be subject to the 
recordkeeping requirements of 26 U.S.C. 5121, Sec.  24.54 is revised to 
provide that the records required by subpart O of part 24 will satisfy 
these requirements, except where the bonded wine cellar or taxpaid wine 
bottling house engages in dealer operations not covered by the 
recordkeeping requirements of part 24.
    Miscellaneous Amendments to Part 24. Several sections in part 24 
relating to special tax have been removed. In addition, several 
sections have been amended by removing all reference to special tax and 
by replacing those references, where appropriate, with provisions 
covering the registration of proprietors as dealers. TTB notes that 
with regard to Sec.  24.146, which covers bonds, although the specific 
reference to special tax is removed, bonds will still cover liability 
for unpaid special tax that was due prior to the repeal. Finally, Sec.  
24.53 is revised to cover amendment of the dealer registration.

Part 25--Beer

    The regulations in 27 CFR part 25 govern operations at breweries. 
Subpart I and several sections in part 25 have been amended.
    Subpart I--Dealer Registration. Subpart I has been revised in order 
to remove all sections relating to special tax, and the subpart heading 
has been revised to read ``Subpart I--Dealer Registration and 
Recordkeeping.'' As a result of the changes to the IRC made by section 
11125 of the Act, effective July 1, 2008, every proprietor of a brewery 
who sells or offers for sale any distilled spirits, wines, or beer must 
register as a dealer. As noted above, TTB has determined that 
registration of the brewery premises will be accomplished when the 
proprietor files a Brewer's Notice, Form 5130.10, and TTB approves the 
notice. The revised subpart includes Sec.  25.112, which explains the 
registration process for proprietors. In addition, the revised subpart 
contains a section on amending the registration (Sec.  25.113), which 
provides that amendments to the brewer's notice serve as amended dealer 
registrations, and a section on dealer records (Sec.  25.114--see the 
description of this section immediately below).
    Dealer Recordkeeping. Although brewers who sell beverage beer (or 
offer it for sale) will be subject to the recordkeeping requirements of 
26 U.S.C. 5121, the records required by subpart U of part 25 provide 
similar information. Therefore, Sec.  25.114 provides that the records 
of subpart U will satisfy the requirements of section 5121 of the IRC, 
except where the brewer engages in dealer operations not covered by the 
recordkeeping requirements of part 25.
    Employer Identification Number. Section 25.168, which concerns 
employer identification numbers, has been amended to revise a cross 
reference to instructions regarding the application for an employer 
identification number. Those instructions were formerly in subpart I 
and addressed the preparation of the special tax return. Since subpart 
I now deals with dealer registration, those instructions have been 
removed from that subpart and added as a new Sec.  25.169, and the 
cross reference in Sec.  25.168 has been revised accordingly.
    Miscellaneous Amendments. In addition to the above amendments, TTB 
has made several minor amendments to the part 25 regulations by 
removing references to special tax in various sections.

Part 26--Liquors and Articles From Puerto Rico and the Virgin Islands

    The regulations in 27 CFR part 26 govern operations of persons 
bringing alcohol beverages and certain other alcoholic products to the 
United States from Puerto Rico and the Virgin Islands. These persons 
include brewers, proprietors of distilled spirits plants and bonded 
wine cellars, dealers in denatured alcohol, and nonbeverage drawback 
claimants. Accordingly, several sections in part 26 are affected.
    Industrial Alcohol. Since the special tax provisions on tax-free 
alcohol users, and on denatured spirits users and dealers, are 
repealed, Sec.  26.36 is amended by removing references to that tax, 
and Sec.  26.47 is removed. Because tax-free alcohol is fit for 
beverage use, persons shipping such alcohol to the United States for 
sale are subject to registration as alcohol beverage dealers; however, 
such registration will be accomplished by obtaining a distilled spirits 
plant permit and complying with the other requirements of 27 CFR part 
19. Section 26.36(b) is amended accordingly. Section 26.46, which 
relates only to special (occupational) tax

[[Page 37398]]

on distilled spirits plant proprietors, is removed.
    Nonbeverage drawback claimant registration. Sections 26.171 and 
26.173 (Puerto Rico), and Sec. Sec.  26.307 and 26.309 (Virgin 
Islands), are revised or otherwise amended to replace references to the 
special tax for nonbeverage drawback claimants with a discussion of the 
new registration requirement for claimants similar to the discussion in 
part 17 above.
    Dealer registration. In Sec. Sec.  26.44 and 26.45 (Puerto Rico) 
and Sec. Sec.  26.210 and 26.211 (Virgin Islands), references to the 
special tax registration and return for alcohol occupations are changed 
to refer to dealer registration and recordkeeping.
    Miscellaneous Amendments. We changed a legal citation within the 
definition of ``eligible flavors'' and several informational citations 
to reflect the redesignation of certain sections of law affected by 
section 11125 of the Act. We made some minor technical amendments in 
Sec. Sec.  26.173(a) and 26.309(a) relating to the description of the 
drawback rate and the procedure for filing drawback claims. In 
Sec. Sec.  26.173(c) and 26.309(c), we replaced the requirement for 
entering the control number on the special tax stamp with a requirement 
for entering the claimant's employer identification number, since the 
special tax return (which is no longer filed by these claimants) 
formerly supplied TTB with that information.

Part 27--Importation of Distilled Spirits, Wines, and Beer

    The regulations in 27 CFR part 27 govern operations of persons 
importing distilled spirits, wine, and beer into the United States. 
Several sections of regulations within part 27 have been amended.
    Dealer registration. In Sec. Sec.  27.30 and 27.31, references to 
the special tax registration and return for alcohol occupations are 
changed to refer to dealer registration.
    Miscellaneous Amendments. We also changed a legal citation within 
the definition of ``eligible flavors'' and several informational 
citations to reflect the redesignation of certain sections of law 
affected by section 11125 of the Act.

Part 28--Exportation of Alcohol

    The regulations in 27 CFR part 28 govern operations by persons 
exporting distilled spirits, wines, and beer to foreign countries and 
possessions of the United States. Section 28.212, dealing with persons 
authorized to export wine with benefit of drawback, is revised to 
replace the reference to payment of special tax as a wholesale liquor 
dealer with a reference to registration as such a dealer under part 31. 
Also, the authority citation for part 28 is revised to reflect the 
repeal or redesignation of certain sections of law by section 11125 of 
the Act.

Part 31--Alcohol Beverage Dealers

    The regulations in 27 CFR part 31 govern the operations of alcohol 
beverage dealers. The principal subject matter of part 31 historically 
has been the special (occupational) tax. The elimination of that tax 
makes it necessary to revise the entire part. In general, we have 
attempted in this document to retain as much of the old part 31 as can 
be adapted to the IRC provisions as amended by section 11125 of the 
Act. Nevertheless, the new part 31 set forth in this document is 
significantly shorter. References to the special (occupational) tax are 
removed, the part is reorganized, conforming changes are made to cross 
references, and OMB information collection approval numbers are 
updated. Several new sections are added to clarify producers' status as 
dealers (Sec.  31.48), to describe situations where registration is 
required (Sec. Sec.  31.137 and 31.138), to clarify liability for 
special (occupational) tax for periods prior to its elimination (Sec.  
31.234), and to set forth penalty and disclosure provisions (Sec. Sec.  
31.14 and 31.15). In addition, sections concerning preparation of the 
special tax return are redrafted to cover preparation of the dealer 
registration form, and sections concerning exemption from dealer's 
special tax for persons who registered as producers are removed.
    Sections that formerly clarified liability for special tax have 
been revised to clarify when persons are considered to be dealers 
subject to the regulations. Some of these clarifications in part 31 
were based on specific statutory exemptions formerly contained in 26 
U.S.C. 5113 and 5123. Although these two statutory provisions were 
repealed by section 11125 of the Act, we will continue to apply those 
exemptions as administrative interpretations.
    As noted above, the exemption in repealed section 5113 of the IRC 
for proprietors of controlled premises (distilled spirits plants, 
bonded wine cellars, taxpaid wine bottling houses, and breweries) has 
been retained in effect by allowing qualification documents and records 
required by part 19, 24, or 25, as applicable, to satisfy the alcohol 
dealer registration and recordkeeping requirements (Sec. Sec.  31.48, 
31.154). Other exemptions and exceptions in repealed section 5113 that 
are retained in the revised part 31 texts pertain to: States, political 
subdivisions, etc. (Sec. Sec.  31.43, 31.153); creditors, fiduciaries, 
and officers of court (Sec. Sec.  31.62(a), (b) and (c)); retiring 
partners or representatives of deceased partners (Sec.  31.62(d)); 
persons returning liquors for credit, refund, or exchange (Sec.  
31.67); dealers making sales on purchaser dealers' premises (Sec. Sec.  
31.52 and 31.53); retail dealers selling in liquidation (Sec.  31.66); 
and retail dealers selling to limited retail dealers (Sec.  31.55(b)).
    Exemptions and exceptions contained in repealed section 5123 of the 
IRC that are retained in the revised part 31 texts pertain to: 
Wholesale dealers making retail sales (Sec.  31.51); retail dealers 
``at large'' (Sec.  31.94); dealers on trains, aircraft, or vessels 
(Sec. Sec.  31.91 through 31.93); and liquor stores operated by States, 
political subdivisions, etc. (Sec. Sec.  31.43, 31.153). The exemption 
from additional special tax when a wholesale or retail dealer in beer 
begins to sell other liquors, which was formerly provided for in 
repealed sections 5113(g) and 5123(c) of the IRC, is not retained in 
the revised part 31 texts for registration purposes, because section 
11125 of the Act requires a dealer to register his or her ``trade or 
business'' (see new Sec.  31.75).
    The table below shows the source of, and extent of the change 
reflected in, each section in revised part 31:

------------------------------------------------------------------------
             New section                       Source  (action)
------------------------------------------------------------------------
31.0................................  31.1 (P)
------------------------------------------------------------------------
                      Subpart A--General Provisions
------------------------------------------------------------------------
31.1................................  31.11 (P)
31.2................................  31.2 (O)
31.3................................  31.3 (P)
31.4................................  31.4 (P)
------------------------------------------------------------------------
                  Subpart B--Administrative Provisions
------------------------------------------------------------------------
31.11...............................  31.41 (P)
31.12...............................  31.42 (O)
31.13...............................  31.43 (O)
31.14...............................  31.109, 31.111 (C)
31.15...............................  26 U.S.C. 6103 (N)
------------------------------------------------------------------------
               Subpart C--Activities Subject to this Part
------------------------------------------------------------------------
31.21...............................  31.21 (P)
31.22...............................  31.22 (O)
------------------------------------------------------------------------
                           Dealers Classified
------------------------------------------------------------------------
31.31...............................  31.23 (P)
31.32...............................  31.24 (P)
31.33...............................  31.25 (P)
31.34...............................  31.26 (P)
31.35...............................  31.27 (O)
31.36...............................  31.28 (O)
------------------------------------------------------------------------

[[Page 37399]]

 
              Certain Organizations, Agencies, and Persons
------------------------------------------------------------------------
31.41...............................  31.29 (P)
31.42...............................  31.30 (P)
31.43...............................  31.31 (P)
31.44...............................  31.32 (P)
31.45...............................  31.33 (P)
31.46...............................  31.34 (P)
31.47...............................  31.35 (P)
31.48...............................  (N)
------------------------------------------------------------------------
                  Subpart D--Exemptions and Exceptions
------------------------------------------------------------------------
          Persons Exempt From Registration and/or Recordkeeping
------------------------------------------------------------------------
31.51...............................  31.23(c)(1) and 31.25(c)(1) (C)
31.52...............................  31.185 (P)
31.53...............................  31.186 (P)
31.54...............................  31.187 (P)
31.55...............................  31.187a (P)
------------------------------------------------------------------------
             Persons Who Are Not Dealers in Liquors or Beer
------------------------------------------------------------------------
31.61...............................  31.181 (C)
31.62...............................  31.188 (P)
31.63...............................  31.189 (P)
31.64...............................  31.190 (P)
31.65...............................  31.191 (P)
31.66...............................  31.192 (O)
31.67...............................  31.193 (P)
------------------------------------------------------------------------
                Subpart E--Places Subject to Registration
------------------------------------------------------------------------
31.71...............................  31.51 (P)
31.72...............................  31.52 (O)
31.73...............................  31.53 (P)
31.74...............................  31.54 (P)
31.75...............................  31.72 (C)
------------------------------------------------------------------------
             Sales in Two or More Areas on the Same Premises
------------------------------------------------------------------------
31.81...............................  31.57 (P)
31.82...............................  31.58 (P)
31.83...............................  31.59 (P)
------------------------------------------------------------------------
                       Sales in Multiple Locations
------------------------------------------------------------------------
31.91...............................  31.124 (P)
31.92...............................  31.125 (P)
31.93...............................  31.126 (P)
31.94...............................  31.127 (P)
31.95...............................  31.55 (P)
31.96...............................  31.56 (P)
------------------------------------------------------------------------
                         Subpart F--Partnerships
------------------------------------------------------------------------
31.101..............................  31.91 (P)
31.102..............................  31.92 (P)
31.103..............................  31.93 (P)
31.104..............................  31.94 (P)
------------------------------------------------------------------------
               Subpart G--Registration Form, TTB F 5630.5d
------------------------------------------------------------------------
31.111..............................  31.102 (C)
31.112..............................  31.106(c) (P)
31.113..............................  31.104a (P)
31.114..............................  31.106 (P)
31.115..............................  31.106a (P)
31.116..............................  31.107 (P)
------------------------------------------------------------------------
             Subpart H--Changes in Registration Information
------------------------------------------------------------------------
            Changes Requiring Registration as a New Business
------------------------------------------------------------------------
31.121..............................  31.161 (P)
31.122..............................  31.162 (P)
31.123..............................  31.163 (P)
31.124..............................  31.164 (P)
31.125..............................  (N)
------------------------------------------------------------------------
                              Other Changes
------------------------------------------------------------------------
31.131..............................  31.151 (C)
31.132..............................  31.165 (P)
31.133..............................  31.165 (C)
31.134..............................  31.166 (P)
31.135..............................  31.167 (P)
31.136..............................  31.168 (P)
31.137..............................  (N)
31.138..............................  (N)
------------------------------------------------------------------------
   Subpart I--Restrictions Relating to Purchases of Distilled Spirits
------------------------------------------------------------------------
31.141..............................  31.211 (P)
------------------------------------------------------------------------
                     Subpart J--Records and Reports
------------------------------------------------------------------------
                 Wholesale Dealers' Records and Reports
------------------------------------------------------------------------
31.151..............................  31.221 (P)
31.152..............................  31.222 (P)
31.153..............................  31.223 (P)
31.154..............................  31.224 (P)
31.155..............................  31.225 (P)
31.156..............................  31.226 (P)
31.157..............................  31.227 (P)
31.158..............................  31.228 (P)
31.159..............................  31.229 (O)
31.160..............................  31.230 (O)
31.161..............................  31.231 (P)
31.162..............................  31.232 (P)
31.163..............................  31.233 (P)
------------------------------------------------------------------------
            Filing of Wholesale Dealer's Records and Reports
------------------------------------------------------------------------
31.171..............................  31.235 (P)
31.172..............................  31.236 (P)
------------------------------------------------------------------------
                         Retail Dealer's Records
------------------------------------------------------------------------
31.181..............................  31.234 (O)
------------------------------------------------------------------------
                     Retention of Records and Files
------------------------------------------------------------------------
31.191..............................  31.237 (P)
31.192..............................  31.238 (P)
------------------------------------------------------------------------
         Subpart K--Reuse and Possession of Used Liquor Bottles
------------------------------------------------------------------------
31.201..............................  31.261 (N)
31.202..............................  31.262 (P)
31.203..............................  31.263 (N)
31.204..............................  31.264 (P)
------------------------------------------------------------------------
           Subpart L--Packaging of Alcohol for Industrial Uses
------------------------------------------------------------------------
31.211..............................  31.271 (P)
31.212..............................  31.272 (O)
------------------------------------------------------------------------
    Subpart M--Distilled Spirits for Export with Benefit of Drawback
------------------------------------------------------------------------
31.221..............................  31.281 (P)
31.223..............................  31.283 (P)
------------------------------------------------------------------------
                        Subpart N--Miscellaneous
------------------------------------------------------------------------
31.231..............................  31.291 (O)
31.232..............................  31.292 (O)
31.233..............................  31.293 (P)
31.234..............................  (N)
------------------------------------------------------------------------
* Actions: (C) = Complete revision;
(N) = New section; (O) = No revision;
(P) = Partial revision.

Part 40--Manufacture of Tobacco Products and Cigarette Papers and Tubes

    The regulations in 27 CFR part 40 govern manufacturers of tobacco 
products and cigarette papers and tubes. Although section 11125 of the 
Act did not do away with the special tax on tobacco occupations, TTB 
believes that it would be appropriate to have the special tax 
provisions applicable to tobacco products and cigarette papers and 
tubes in one place, similar to the approach taken in revised part 31 
for alcohol beverage dealer registration. Accordingly, in this document 
we have removed and reserved a number of part 40 sections and 
transferred their contents to a new subpart D in part 46, which 
contains miscellaneous regulations relating to tobacco products and 
cigarette papers and tubes.
    In addition to the transfer of special tax provisions to part 46, 
this document includes a number of other changes to the part 40 texts. 
A definition of ``special tax'' is added to Sec.  40.11 to facilitate 
its use in the part 40 texts in place of ``special (occupational) 
tax.'' Section 40.31 is amended by removing the 1988 transition rule in 
paragraph (b), clarifying liability for special tax under a 
partnership, and updating the informational citation at the end of the 
section. The informational citation at the end of Sec.  40.371 is also 
amended to reflect the redesignation of certain IRC sections by section 
11125 of the Act. Finally, Sec. Sec.  40.33 and 40.373 are revised to 
serve as cross references to the special tax provisions of part 46.

Part 44--Exportation of Tobacco Products and Cigarette Papers and 
Tubes, Without Payment of Tax, or With Drawback of Tax

    The regulations in 27 CFR part 44 govern exportation of tobacco 
products and cigarette papers and tubes. For the same reason stated for 
part 40 above, we

[[Page 37400]]

have transferred the part 44 special tax provisions to new subpart D of 
part 46.
    For the same reason stated for Sec.  40.11 above, a definition of 
``special tax'' is added to Sec.  44.11. In addition, Sec.  44.31 is 
amended by removing the superseded 1988 transition rule in paragraph 
(b), clarifying liability for special tax under a partnership, and 
updating the informational citation at the end to reflect the 
redesignation of certain IRC sections by section 11125 of the Act. 
Finally, Sec.  44.33 is revised to direct users to part 46 for 
additional provisions concerning special tax.

Part 46--Miscellaneous Regulations Relating to Tobacco Products and 
Cigarette Papers and Tubes

    As discussed above, we are adding a new subpart D to 27 CFR part 46 
to set forth provisions related to special tax on tobacco product and 
related occupations. Certain sections are consolidated from parts 40 
and 44, and others are adopted from the liquor dealer regulations in 
part 31. The regulations adopted for part 46 from part 31 reflect 
special tax policy positions developed through rulemaking during the 
time we administered the dealer's tax. Because we would be guided by 
these positions if similar questions arose concerning regulated 
entities in the tobacco product and related occupations, we are 
adopting them for part 46 purposes to preserve the precedents that 
existed. The table below shows the source of each new subpart D 
section:

------------------------------------------------------------------------
         New section number                         Source
------------------------------------------------------------------------
46.91...............................  new
46.92...............................  new
46.93...............................  31.57 and 31.71
46.94...............................  31.4, 31.123
46.95...............................  31.91
------------------------------------------------------------------------
                         Payment of Special Tax
------------------------------------------------------------------------
46.101..............................  40.33, 40.373, and 44.33
46.102..............................  40.34 and 44.34
46.103..............................  31.104
46.104..............................  31.105
46.105..............................  31.138
46.106..............................  31.122
46.107..............................  31.109
46.108..............................  31.110
46.109..............................  31.111
------------------------------------------------------------------------
                           Special Tax Stamps
------------------------------------------------------------------------
46.116..............................  40.35, 40.374, and 44.35
46.117..............................  31.132
46.118..............................  31.133
46.119..............................  31.153
46.120..............................  31.134
46.121..............................  31.135
------------------------------------------------------------------------
            Changes in Businesses Holding Special Tax Stamps
------------------------------------------------------------------------
46.126..............................  40.36, 40.375, 44.36 and 31.151-
                                       31.152
46.127..............................  40.36, 40.375, 44.36, 17.77, and
                                       31.163
------------------------------------------------------------------------
           Stamps for Incorrect Period or Incorrect Liability
------------------------------------------------------------------------
46.131..............................  31.136
46.132..............................  31.137-139
------------------------------------------------------------------------
                  Abatement or Refund of Special Taxes
------------------------------------------------------------------------
46.136..............................  31.201
46.137..............................  31.202
46.138..............................  31.203
------------------------------------------------------------------------

    We did not adopt those provisions of part 31 that dealt with 
exemptions and exceptions from liquor dealers tax because we do not 
believe they are relevant to the special tax on tobacco product and 
related occupations.

Part 70--Procedure and Administration

    Part 70 of 27 CFR sets forth the procedural and administrative 
rules of the Alcohol and Tobacco Tax and Trade Bureau. We have amended 
various sections within part 70 to change references to special tax on 
alcohol occupations to references to dealer registration or claimant 
registration while retaining or adding references to special tax on 
tobacco occupations. We have also removed references to OMB approval 
after Sec. Sec.  70.411, 70.412, and 70.414, and 70.431, because those 
sections are part of the Statement of Procedural Rules. These sections 
do not impose a recordkeeping requirement but rather only point to 
regulatory provisions that do impose a recordkeeping requirement. 
Finally, no changes were made to the title of subpart D or to 
Sec. Sec.  70.61, 70.64, 70.433, 70.441, 70.442, or 70.448, because 
they refer to occupational taxes that are still in effect.

Regulatory Flexibility Act

    We certify that this temporary rule will not have a significant 
economic impact on a substantial number of small entities. Accordingly, 
a regulatory flexibility analysis is not required. The relevant 
collections of information derive directly from the Internal Revenue 
Code of 1986, as amended, and the regulations in this rule concerning 
these collections merely implement the statutory requirements. 
Likewise, any secondary or incidental effects, and any reporting, 
recordkeeping, or other compliance burdens flow directly from the 
statute. Pursuant to 26 U.S.C. 7805(f), this temporary regulation will 
be submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small businesses.

Paperwork Reduction Act

    TTB has provided estimates of the burdens that the collections of 
information contained in these regulations impose, and these estimated 
burdens have been reviewed and approved by the Office of Management and 
Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507) and assigned control numbers 1513-0088, 1513-0112, and 
1513-0113. Finally, TTB has provided the public with notice of these 
collections of information and solicited comments on them, with the 
most recent notices being published in the Federal Register on May 2, 
2006 (71 FR 25889) for OMB No. 1513-0088, November 21, 2007 (72 FR 
65646) for OMB No. 1513-0113, and September 4, 2008 (73 FR 51699) for 
OMB No. 1513-0112. To date, TTB has not received any comments in 
response to these notices.
    Under the Paperwork Reduction Act of 1995, 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 OMB control 
number.
    Comments concerning suggestions for reducing the burden of the 
collections of information in this document 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).

Executive Order 12866

    This is not a significant regulatory action as defined in E.O. 
12866. Therefore, it requires no regulatory assessment.

Inapplicability of Prior Notice and Comment and Delayed Effective Date 
Procedures

    Because this document merely implements a law which was effective 
on July 1, 2008, and because immediate guidance is necessary to 
implement the provisions of the law, it is found to be impracticable to 
issue this Treasury decision with notice and public procedure under 5 
U.S.C. 553(b).
    Pursuant to the provisions of 5 U.S.C. 553(d)(1), (d)(2), and 
(d)(3), we are issuing these regulations without a delayed effective 
date. These temporary regulations recognize an exemption within the 
meaning of section 553(d)(1)

[[Page 37401]]

and (d)(2) because they lessen burdens by recognizing previously filed 
documents as registration and recognize longstanding agency 
interpretations in previously published regulations, respectively. 
Furthermore, TTB has determined that good cause exists to provide 
industry members with immediate guidance on their utilization of 
registration procedures in accordance with section 553(d)(3).

Drafting Information

    Steve Simon, Daniel Hiland, and Marjorie Ruhf of the Regulations 
and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, drafted 
this document. Other personnel also participated in its development.

List of Subjects

27 CFR Part 17

    Administrative practice and procedure, Claims, Cosmetics, Customs 
duties and inspection, Drugs, Excise taxes, Exports, Imports, Liquors, 
Packaging and containers, Puerto Rico, Reporting and recordkeeping 
requirements, Spices and flavorings, Surety bonds, Virgin Islands.

27 CFR Part 19

    Administrative practice and procedures, Caribbean Basin Initiative, 
Claims, Electronic funds transfers, Excise taxes, Exports, Gasohol, 
Imports, Labeling, Liquors, Packaging and containers, Puerto Rico, 
Reporting and recordkeeping requirements, Research, Security measures, 
Surety bonds, Vinegar, Virgin Islands, Warehouses.

27 CFR Part 20

    Alcohol and alcoholic beverages, Claims, Cosmetics, Excise taxes, 
Labeling, Packaging and containers, Penalties, Reporting and 
recordkeeping requirements, Surety bonds.

27 CFR Part 22

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Excise taxes, Reporting and recordkeeping requirements, 
Surety bonds.

27 CFR Part 24

    Administrative practice and procedure, Claims, Electronic fund 
transfers, Excise taxes, Exports, Food additives, Fruit juices, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Research, Scientific equipment, Spices and 
flavoring, Surety bonds, Vinegar, Warehouses, Wine.

27 CFR Part 25

    Administrative practice and procedure, Beer, Claims, Electronic 
funds transfers, Excise taxes, Exports, Labeling, Packaging and 
containers, Reporting and recordkeeping requirements, Research, Surety 
bonds.

27 CFR Part 26

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Caribbean Basin Initiative, Claims, Customs duties and 
inspection, Electronic funds transfers, Excise taxes, Packaging and 
containers, Puerto Rico, Reporting and recordkeeping requirements, 
Surety bonds, Virgin Islands, Warehouses.

27 CFR Part 27

    Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties 
and inspection, Electronic funds transfers, Excise taxes, Imports, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Wine.

27 CFR Part 28

    Aircraft, Alcohol and alcoholic beverages, Armed forces, Beer, 
Claims, Excise taxes, Exports, Foreign trade zones, Labeling, Liquors, 
Packaging and containers, Reporting and recordkeeping requirements, 
Surety bonds, Vessels, Warehouses, Wine.

27 CFR Part 31

    Alcohol and alcoholic beverages, Excise taxes, Exports, Packaging 
and containers, Reporting and recordkeeping requirements.

27 CFR Part 40

    Cigars and cigarettes, Claims, Electronic funds transfers, Excise 
taxes, Imports, Labeling, Packaging and containers, Reporting and 
recordkeeping requirements, Surety bonds, Tobacco.

27 CFR Part 44

    Aircraft, Armed forces, Cigars and cigarettes, Claims, Customs 
duties and inspection, Excise taxes, Exports, Foreign trade zones, 
Labeling, Packaging and containers, Reporting and recordkeeping 
requirements, Surety bonds, Tobacco, Vessels, Warehouses.

27 CFR Part 46

    Administrative practice and procedure, Cigars and cigarettes, 
Claims, Excise taxes, Packaging and containers, Penalties, Reporting 
and recordkeeping requirements, Seizures and forfeitures, Surety bonds, 
Tobacco.

27 CFR Part 70

    Administrative practice and procedure, Claims, Excise taxes, 
Freedom of information, Law enforcement, Penalties, Reporting and 
recordkeeping requirements, Surety bonds.

Authority and Issuance

0
For the reasons discussed in the preamble, TTB amends 27 CFR parts 17, 
19, 20, 22, 24, 25, 26, 27, 28, 31, 40, 44, 46, and 70 as set forth 
below:

PART 17--DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN 
MANUFACTURING NONBEVERAGE PRODUCTS

0
1. The authority citation for part 17 is revised to read as follows:

    Authority:  26 U.S.C. 5010, 5111-5114, 5123, 5206, 5273, 6065, 
6091, 6109, 7213, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.


Sec.  17.1   [Amended]

0
2. Section 17.1 is amended by removing the words, ``the payment of 
special (occupational) taxes in order to be eligible to receive 
drawback;''.
0
3. Section 17.4 is revised to read as follows:


Sec.  17.4   OMB control numbers assigned under the Paperwork Reduction 
Act.

    (a) Purpose. This section collects and displays the control numbers 
assigned to the information collection requirements of this part by the 
Office of Management and Budget under the Paperwork Reduction Act of 
1995.
    (b) OMB control number 1513-0013. OMB control number 1513-0013 is 
assigned to the following section in this part: Sec.  17.106.
    (c) OMB control number 1513-0014. OMB control number 1513-0014 is 
assigned to the following sections in this part: Sec. Sec.  17.6 and 
17.105.
    (d) OMB control number 1513-0021. OMB control number 1513-0021 is 
assigned to the following sections in this part: Sec. Sec.  17.121, 
17.126, 17.127, 17.132, and 17.136.
    (e) OMB control number 1513-0130. OMB control number 1513-0130 is 
assigned to the following sections in this part: Sec. Sec.  17.142, 
17.145, and 17.146.
    (f) OMB control number 1513-0036. OMB control number 1513-0036 is 
assigned to the following section in this part: Sec.  17.6.
    (g) OMB control number 1513-0072. OMB control number 1513-0072 is 
assigned to the following sections in this part: Sec. Sec.  17.3, 
17.111, 17.112, 17.122, 17.123, 17.124, 17.125, 17.143, 17.168(a), 
17.183, and 17.187.
    (h) OMB control number 1513-0073. OMB control number 1513-0073 is 
assigned to the following sections in this part: Sec. Sec.  17.161, 
17.162, 17.163,

[[Page 37402]]

17.164, 17.165, 17.166, 17.167, 17.168(b), 17.169, 17.170, 17.182, and 
17.186.
    (i) OMB control number 1513-0088. OMB control number 1513-0088 is 
assigned to the following section in this part: Sec.  17.23.
    (j) OMB control number 1513-0098. OMB control number 1513-0098 is 
assigned to the following sections in this part: Sec. Sec.  17.147 and 
17.182.


Sec.  17.11   [Amended]

0
4. Section 17.11 is amended by removing the definition of ``Special 
tax''.
0
5. Subpart C is revised to read as follows:
Subpart C--Registration
Sec.
17.21 Registration.
17.22 Employer identification number.
17.23 Application for employer identification number.

Subpart C--Registration


Sec.  17.21   Registration.

    Every person claiming drawback under this part must register 
annually as a nonbeverage domestic drawback claimant. Registration will 
be accomplished when the claimant submits the first drawback claim for 
each year along with the supporting data required under subpart G of 
this part. No registration is required for