Drawback of Internal Revenue Taxes, 52937-52941 [E9-24791]
Download as PDF
<![CDATA[
Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Proposed Rules
with the provisions governing the
program involved, if the participant
does not meet the applicable SSN
disclosure, documentation, and
verification requirements specified in
§ 5.216.
(2) The processing entity may defer
termination and provide the participant
with an additional 90 days to disclose
a SSN, but only if unless the processing
entity, in its discretion, determines that:
(i) The failure to meet these
requirements was due to circumstances
that could not have reasonably been
foreseen and were outside the control of
the participant; and
(ii) There is a reasonable likelihood
that the participant will be able to
disclose a SSN by the deadline.
(3) Failure of the participant to
disclose a SSN by the deadline specified
in paragraph (c)(2) of this section will
result in termination of the assistance or
tenancy, or both, of the participant.
*
*
*
*
*
4. Add a new § 5.233 to read as
follows:
erowe on DSK5CLS3C1PROD with PROPOSALS-1
§ 5.233 Mandated use of HUD’s Enterprise
Income Verification (EIV) System.
(a) Programs subject to this section
and requirements. (1) The requirements
of this section apply to entities
administering assistance under the:
(i) Public Housing program under 24
CFR part 960;
(ii) Section 8 Housing Choice Voucher
(HCV) program under 24 CFR part 982;
(iii) Moderate Rehabilitation program
under 24 CFR part 882;
(iv) Project-based Voucher program
under 24 CFR part 983;
(v) Project-based Section 8 programs
under 24 CFR parts 880, 881, 883, 884,
886, and 891;
(vi) Section 202 of the Housing Act of
1959 (12 U.S.C. 1701q);
(vii) Section 811 of the CranstonGonzalez National Affordable Housing
Act (42 U.S.C. 8013);
(viii) Sections 221(d)(3) and 236 of the
National Housing Act (12 U.S.C.
1715l(d)(3) and 1715z–1); and
(ix) Rent Supplement program under
section 101 of the Housing and Urban
Development Act of 1965 (12 U.S.C.
1701s).
(2) Processing entities must use
HUD’s EIV system in its entirety:
(i) As a third-party source to verify
tenant employment and income
information during mandatory
reexaminations or recertifications of
family composition and income, in
accordance with § 5.236 and
administrative guidance issued by HUD;
and
(ii) To reduce administrative and
subsidy payment errors in accordance
with HUD administrative guidance.
VerDate Nov<24>2008
15:05 Oct 14, 2009
Jkt 220001
(b) Penalties for noncompliance.
Failure to use the EIV system in its
entirety may result in the imposition of
sanctions and/or the assessment of
disallowed costs associated with any
resulting incorrect subsidy or tenant
rent calculations, or both.
§ 5.236
[Amended]
5. In § 5.236(b)(3)(i)(A), remove
‘‘215’’.
PART 908—ELECTRONIC
TRANSMISSION OF REQUIRED
FAMILY DATA FOR PUBLIC HOUSING,
INDIAN HOUSING, AND THE SECTION
8 RENTAL CERTIFICATE, RENTAL
VOUCHER, AND MODERATE
REHABILITATION PROGRAMS
6. The authority citation for part 908
continues to read as follows:
Authority: 42 U.S.C. 1437f, 3535d, 3543,
3544, and 3608a.
7. Revise § 908.101 to read as follows:
§ 908.101
Purpose.
The purpose of this part is to require
Public Housing Agencies (PHAs),
including Moving to Work (MTW)
PHAs, that operate Public Housing,
Indian Housing, or Section 8 Rental
Certificate, Housing Choice Voucher
(HCV), Rental Voucher, and Moderate
Rehabilitation programs to
electronically submit certain data to
HUD for those programs. These
electronically submitted data are
required for HUD forms: HUD–50058,
including the Family Self-Sufficiency
(FSS) Addendum. Applicable program
entities must retain at a minimum, the
last three years of the form HUD–50058,
and supporting documentation, during
the term of each assisted lease, and for
a period of at least 3 years from the end
of participation (EOP) date, to support
billings to HUD and to permit an
effective audit. Electronic retention of
form HUD–50058 and HUD–50058–FSS
and supporting documentation fulfills
the retention requirement under this
section.
Dated: September 23, 2009.
Shaun Donovan,
Secretary.
[FR Doc. E9–24809 Filed 10–14–09; 8:45 am]
BILLING CODE 4210–67–P
PO 00000
Frm 00024
Fmt 4702
Sfmt 4702
52937
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Parts 28 and 44
[Docket No. TTB–2009–0005; Notice No.
100]
RIN 1513–AB77
Drawback of Internal Revenue Taxes
AGENCY: Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
SUMMARY: The Alcohol and Tobacco Tax
and Trade Bureau proposes to amend its
regulations to clarify the relationship
between tax payment under the Internal
Revenue Code of 1986 and drawback of
tax under the Tariff Act of 1930. The
proposal provides conforming
amendments to reflect proposed
Customs and Border Protection
regulations stating that domestic
merchandise on which no tax is paid
under the Internal Revenue Code may
not be substituted for imported
merchandise for purposes of claims for
drawback of tax under the customs laws
and regulations.
DATES: We must receive your written
comments on or before December 14,
2009.
ADDRESSES: You may send comments on
this notice to one of the following
addresses:
• https://www.regulations.gov: Use the
comment form for this notice on the
Federal e-rulemaking portal,
Regulations.gov, to submit comments
via the Internet;
• Mail: Director, Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, P.O. Box 14412,
Washington, DC 20044–4412.
• Hand Delivery/Courier in Lieu of
Mail: Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street, NW., Suite
200–E, Washington, DC 20005.
See the Public Participation section of
this notice for specific instructions and
requirements for submitting comments,
and for information on how to request
a public hearing.
You may view copies of this notice,
selected supporting materials, and the
comments we receive about this
proposal within Docket No. TTB–2009–
0005 at https://www.regulations.gov. A
direct link to this docket is posted on
the TTB Web site at https://www.ttb.gov/
regulations_laws/all_rulemaking.shtml
under Notice No. 100. You also may
view copies of this notice, all
supporting materials, and the comments
we receive about this proposal by
E:\FR\FM\15OCP1.SGM
15OCP1
52938
Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Proposed Rules
appointment at the TTB Information
Resource Center, 1310 G Street, NW.,
Washington, DC 20220. Please call 202–
453–2270 to make an appointment.
FOR FURTHER INFORMATION CONTACT:
Gerry Isenberg, Regulations and Rulings
Division, Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street, NW., Suite
200–E, Washington, DC 20220;
telephone 202–453–2097.
SUPPLEMENTARY INFORMATION:
erowe on DSK5CLS3C1PROD with PROPOSALS-1
Background
Taxation of Distilled Spirits, Wines,
Beer, and Tobacco Products Under the
Internal Revenue Code of 1986
Chapter 51 of the Internal Revenue
Code of 1986 (IRC) sets forth excise tax
collection and related provisions
applicable to distilled spirits, wines,
and beer. Chapter 52 of the IRC contains
similar provisions applicable to tobacco
products and cigarette papers and tubes.
Under Chapter 51, a Federal excise
tax is imposed on all wines and distilled
spirits produced in or imported into the
United States. 26 U.S.C. 5001, 5041. A
Federal excise tax also is imposed on
beer brewed or produced, and removed
for consumption or sale within the
United States, or imported into the
United States. 26 U.S.C. 5051. For
domestically-produced wine, the tax is
imposed at the conclusion of
fermentation or removal from the
fermenter (see 27 CFR 24.176). For
domestically-produced distilled spirits,
the tax is imposed at the time that the
product comes into existence. 26 U.S.C.
5001(b). For domestically-produced
beer, the tax is imposed when the
product is removed for consumption or
sale. 26 U.S.C. 5051. For imported wine,
distilled spirits, and beer, the tax is
imposed when the product is imported
into the United States.
However, Federal excise taxes on
imported and domestically-produced
wine, distilled spirits, and beer are
generally not paid or determined until
the products are removed from bonded
premises or from customs custody for
consumption or sale. 26 U.S.C. 5041,
5061, 5006, 5007, 5054. Domesticallyproduced wine, distilled spirits, and
beer may be exported without payment
of the Federal excise tax. 26 U.S.C.
5362(c), 5214(a), 5053. In addition, on
the exportation of domesticallyproduced wine, distilled spirits, or beer
that was removed from bonded premises
with payment of tax, drawback is
allowed in an amount equal to the tax
paid. 26 U.S.C. 5062, 5055.
Under Chapter 52, a Federal excise
tax is imposed on all tobacco products
and cigarette papers and tubes
manufactured in or imported into the
VerDate Nov<24>2008
15:05 Oct 14, 2009
Jkt 220001
United States. 26 U.S.C. 5701. The tax
on domestically-produced tobacco
products and cigarette papers and tubes
is imposed at the time that the product
comes into existence, that is, when a
product meets one of the definitions
under the IRC. The Federal excise tax on
imported and domestically-produced
tobacco products and cigarette papers
and tubes is generally not paid or
determined until the products are
released from customs custody or
removed from bonded premises. 26
U.S.C. 5702, 5703. Tobacco products
and cigarette papers and tubes may be
removed from bonded premises,
without the payment of Federal excise
tax, for export. 26 U.S.C. 5704.
Regulations implementing the
provisions of Chapters 51 and 52 of the
IRC are contained in 27 CFR chapter 1.
The Alcohol and Tobacco Tax and
Trade Bureau (TTB) within the
Department of the Treasury is
responsible for the administration of
Chapters 51 and 52 and the regulations
promulgated thereunder.
Drawback Under the Tariff Act of 1930
Section 313 of the Tariff Act of 1930,
as amended (19 U.S.C. 1313), provides
for the drawback or refund of duties,
taxes, and fees paid on imported
merchandise if that merchandise is
subsequently exported or destroyed
under customs supervision. Paragraph
(2) of subsection (j), hereafter referred to
as ‘‘(j)(2) drawback,’’ permits the
substitution of other merchandise for
the imported merchandise for purposes
of the exportation or destruction
requirement.
Specifically, the (j)(2) drawback
provision allows the payment of
drawback, not to exceed 99 percent of
the duties, taxes, and fees paid on the
imported merchandise, based on the
exportation or destruction of ‘‘any other
merchandise (whether imported or
domestic)’’ that: (1) Is commercially
interchangeable with the imported
merchandise on which duties, taxes,
and fees were paid, (2) is exported or
destroyed within 3 years of the date of
importation of the imported
merchandise, and (3) before such
exportation or destruction, is not used
within the United States and is in the
possession of the party claiming
drawback, that is, either the importer of
the imported merchandise or a person
who receives from the importer a
certificate of delivery transferring to that
person the imported merchandise or
commercially interchangeable
merchandise or any combination of the
two (and with the transferred
merchandise being treated as the
imported merchandise). The (j)(2)
PO 00000
Frm 00025
Fmt 4702
Sfmt 4702
drawback provision also includes a
standard for commercial
interchangeability for wine, that is,
‘‘wine of the same color having a price
variation not to exceed 50 percent
between the imported wine and the
exported wine.’’
Regulations implementing section 313
are set forth in 19 CFR part 191. Subpart
C of part 191 concerns unused
merchandise drawback and includes, in
§ 191.32, standards applicable to (j)(2)
drawback claims. The Bureau of
Customs and Border Protection (CBP) is
responsible for the administration of
section 313 and the regulations
promulgated thereunder.
Proposed CBP and TTB Regulatory
Changes
In recent years CBP has received and
approved a number of (j)(2) drawback
claims involving imported bottled and
bulk wine and domestically-produced
wine. A hypothetical example of how
such a transaction could work is as
follows: A domestic winery imports 100
cases of bottled wine, pays Federal
excise tax on the wine, and sells the
imported wine in the United States; the
domestic winery then exports 100 cases
of its domestic wine without payment of
Federal excise tax; the domestic winery
then files a (j)(2) drawback claim with
CBP, on the basis that the 100 cases of
domestically-produced wine are
commercially interchangeable with the
100 cases of imported wine; and, finally,
the domestic winery receives a refund of
99 percent of the Federal excise taxes
that it paid on the 100 cases of imported
wine.
In the scenario described above, only
1 percent of the Federal excise tax on
the imported wine is ultimately
received into the U.S. Treasury. Thus,
(j)(2) drawback in effect allows imported
wine to be introduced into the U.S.
market 99 percent free of Federal excise
tax. Although the (j)(2) drawback claims
involving the drawback or refund of IRC
tax that CBP has processed have been
limited to wine, under the present
statutory and regulatory framework,
other products that are subject to excise
tax under IRC Chapters 51 and 52 could
be the subject of claims for (j)(2)
drawback.
Based on a review of the applicable
statutory provisions, the Department of
the Treasury has concluded that the
practice of allowing (j)(2) drawback
claims in circumstances in which
internal revenue taxes have not been
paid on the substituted domestic
product is incompatible with the intent
of Congress in levying excise taxes
under the IRC and extends beyond the
intent of Congress for administering
E:\FR\FM\15OCP1.SGM
15OCP1
erowe on DSK5CLS3C1PROD with PROPOSALS-1
Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Proposed Rules
drawback under the comprehensive
framework of section 313. In order to
address these concerns, CBP in a
document published in this issue of the
Federal Register is proposing to amend
its regulations to preclude the filing of
a claim covering drawback of tax under
subsection (j)(2) if no tax was paid on
the substituted domestically-produced
merchandise.
In view of the relationship between
(j)(2) drawback claims and excise tax
liability under Chapters 51 and 52 of the
IRC as discussed above and as reflected
in the proposed new CBP regulatory
texts, TTB believes that it would be
appropriate to add to the TTB
regulations conforming amendments
that alert the reader to the effect of the
new CBP regulatory provision as regards
alcohol and tobacco products exported
without payment of tax or with
drawback of tax. TTB notes in this
regard that the IRC vests broad authority
in the Secretary of the Treasury to
promulgate regulations governing the
removal of alcohol and tobacco products
for export without payment of tax in
order to ensure protection of the
revenue. See 26 U.S.C. 5053 for beer,
5214(a) for distilled spirits, 5362(c) for
wine, and 5704 for tobacco products.
Furthermore, the IRC vests broad
authority in the Secretary of the
Treasury to promulgate regulations
needed for the enforcement of the IRC.
See 26 U.S.C. 7805(a). TTB believes that
the proposed conforming amendments
are needed to contribute to the
enforcement and integrity of the excise
tax system.
Accordingly, this document proposes
six amendments to part 28 of the TTB
regulations (27 CFR part 28), which
contains rules regarding the exportation
of distilled spirits, wine, and beer
without payment of tax and with
drawback of tax. Similarly, this
document proposes two amendments to
part 44 of the TTB regulations (27 CFR
part 44), which contains rules regarding
the exportation of tobacco products and
cigarette papers and tubes without
payment of tax and with drawback of
tax. Although the only substantive text
change in each affected section involves
the addition of a reference to the new
CBP rule, in several cases the entire
section is revised in order to eliminate
the use of undesignated introductory
and concluding text and thus facilitate
addition of the new provision.
Public Participation
Comments Invited
We invite comments from interested
members of the public on this proposed
rulemaking. Please submit your
VerDate Nov<24>2008
15:05 Oct 14, 2009
Jkt 220001
comments by the closing date shown
above in this notice. Your comments
must reference Notice No. 100 and
include your name and mailing address.
Your comments also must be made in
English, be legible, and be written in
language acceptable for public
disclosure. We do not acknowledge
receipt of comments, and we consider
all comments as originals.
Submitting Comments
You may submit comments on this
notice by using one of the following
three methods:
• Federal e-Rulemaking Portal: You
may send comments via the online
comment form associated with this
notice in Docket No. TTB–2009–0005 on
‘‘Regulations.gov,’’ the Federal
e-rulemaking portal, at https://
www.regulations.gov. A link to that
docket is available under Notice No. 100
on the TTB Web site at https://
www.ttb.gov/regulations_laws/
all_rulemaking.shtml. Supplemental
files may be attached to comments
submitted via Regulations.gov. For
information on how to use
Regulations.gov, click on the site’s Help
or FAQ tabs.
• U.S. Mail: You may send comments
via postal mail to the Director,
Regulations and Rulings Division,
Alcohol and Tobacco Tax and Trade
Bureau, P.O. Box 14412, Washington,
DC 20044–4412.
• Hand Delivery/Courier: You may
hand-carry your comments or have them
hand-carried to the Alcohol and
Tobacco Tax and Trade Bureau, 1310 G
Street, NW., Suite 200–E, Washington,
DC 20005.
If you are commenting on behalf of an
association, business, or other entity,
your comment must include the entity’s
name as well as your name and position
title. If you comment via
Regulations.gov, please include the
entity’s name in the ‘‘Organization’’
blank of the comment form. If you
comment via postal mail, please submit
your entity’s comment on letterhead.
You may also write to the
Administrator before the comment
closing date to ask for a public hearing.
The Administrator reserves the right to
determine whether to hold a public
hearing.
Confidentiality
All submitted comments and
attachments are part of the public record
and subject to disclosure. Do not
enclose any material in your comments
that you consider to be confidential or
that is inappropriate for public
disclosure.
PO 00000
Frm 00026
Fmt 4702
Sfmt 4702
52939
Public Disclosure
On the Federal e-rulemaking portal,
Regulations.gov, we will post, and the
public may view, copies of this notice,
selected supporting materials, and any
electronic or mailed comments we
receive about this proposal. A direct
link to the Regulations.gov docket
containing this notice and the posted
comments received on it is available on
the TTB Web site at https://www.ttb.gov/
regulations_laws/all_rulemaking.shtml
under Notice No. 100. You may also
reach the docket containing this notice
and the posted comments received on it
through the Regulations.gov search page
at https://www.regulations.gov.
All posted comments will display the
commenter’s name, organization (if
any), city, and State, and, in the case of
mailed comments, all address
information, including e-mail addresses.
We may omit voluminous attachments
or material that we consider unsuitable
for posting.
You and other members of the public
may view copies of this notice, any
supporting materials, and any electronic
or mailed comments we receive about
this proposal by appointment at the TTB
Information Resource Center, 1310 G
Street, NW., Washington, DC 20220.
You may also obtain copies at 20 cents
per 8.5 x 11-inch page. Contact our
information specialist at the above
address or by telephone at 202–453–
2270 to schedule an appointment or to
request copies of comments or other
materials.
Regulatory Analysis and Notices
Executive Order 12866
This proposed rule is not a significant
regulatory action as defined in
Executive Order 12866. Therefore, a
regulatory assessment is not required.
Regulatory Flexibility Act
Pursuant to the requirements of the
Regulatory Flexibility Act (5 U.S.C.
chapter 6), we certify that this notice of
proposed rulemaking will not have a
significant economic impact on a
substantial number of small entities.
The proposed rule imposes no
substantive requirements and therefore
will not impose, or otherwise cause, a
significant increase in reporting,
recordkeeping, or other compliance
burdens on a substantial number of
small entities. Accordingly, a regulatory
flexibility analysis is not required.
Drafting Information
Francis W. Foote of the Regulations
and Rulings Division drafted this
document.
E:\FR\FM\15OCP1.SGM
15OCP1
52940
Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Proposed Rules
List of Subjects
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 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.
Authority and Issuance
For the reasons explained in the
preamble, TTB proposes to amend
chapter I of title 27 of the Code of
Federal Regulations as follows:
PART 28—EXPORTATION OF
ALCOHOL
Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c,
1202; 26 U.S.C. 5001, 5007, 5008, 5041, 5051,
5053, 5054, 5061, 5111, 5112, 5114, 5121,
5122, 5124, 5201, 5205, 5207, 5214, 5232,
5273, 5301, 5313, 5362, 5555, 6302, 7805; 27
U.S.C. 203, 205; 44 U.S.C. 3504(h).
2. Section 28.91 is amended by
adding a new paragraph (c) to read as
follows:
General.
*
*
*
*
*
(c) Distilled spirits withdrawn
without payment of tax under this
subpart may not be substituted for
imported merchandise for purposes of
drawback of tax under section 313(j)(2)
of the Tariff Act of 1930, as amended
(19 U.S.C. 1313(j)(2)). See 19 CFR
191.32(b)(4).
3. Section 28.121 is revised to read as
follows:
erowe on DSK5CLS3C1PROD with PROPOSALS-1
§ 28.121
General.
(a) Wine may, subject to this part, be
withdrawn from a bonded wine cellar,
without payment of tax, for:
(1) Exportation;
(2) Use on the vessels and aircraft
described in § 28.21;
(3) Transfer to and deposit in a
foreign-trade zone for exportation or for
storage pending exportation;
(4) Transfer to and deposit in a
customs bonded warehouse as provided
in § 28.27; or
(5) Transportation to and deposit in a
manufacturing bonded warehouse.
VerDate Nov<24>2008
15:05 Oct 14, 2009
Jkt 220001
§ 28.141
General.
*
*
*
*
*
(d) Customs drawback claims. Beer
removed without payment of tax under
this subpart may not be substituted for
imported merchandise for purposes of
drawback of tax under section 313(j)(2)
of the Tariff Act of 1930, as amended
(19 U.S.C. 1313(j)(2)). See 19 CFR
191.32(b)(4).
5. Section 28.171 is revised to read as
follows:
§ 28.171
1. The authority citation for part 28 is
revised to read as follows:
§ 28.91
(b) All such withdrawals shall be
made under the applicable bond
prescribed in subpart D.
(c) Wine withdrawn without payment
of tax under this subpart may not be
substituted for imported merchandise
for purposes of drawback of tax under
section 313(j)(2) of the Tariff Act of
1930, as amended (19 U.S.C. 1313(j)(2)).
See 19 CFR 191.32(b)(4).
4. Section 28.141 is amended by
adding a new paragraph (d) to read as
follows:
General.
(a) Distilled spirits manufactured,
produced, bottled in bottles, packed in
containers, or packaged in casks or other
bulk containers in the United States on
which an internal revenue tax has been
paid or determined, and which have
been marked under the provisions of 27
CFR part 19 and of this part, as
applicable, especially for export with
benefit of drawback may be:
(1) Exported;
(2) Laden for use on the vessels or
aircraft described in § 28.21;
(3) Transferred to and deposited in a
foreign-trade zone for exportation or for
storage pending exportation; or
(4) Transferred to and deposited in a
customs bonded warehouse as provided
for in § 28.26(b).
(b) On receipt by the appropriate TTB
officer of required evidence of
exportation, lading for use, or transfer,
there shall be allowed to the bottler (or
packager) of the spirits, drawback equal
in amount to the tax found to have been
paid or determined on the spirits.
(c) Distilled spirits on which
drawback is paid under this subpart
may not be substituted for imported
merchandise for purposes of drawback
of tax under section 313(j)(2) of the
Tariff Act of 1930, as amended (19
U.S.C. 1313(j)(2)). See 19 CFR
191.32(b)(4).
6. Section 28.211 is revised to read as
follows:
§ 28.211
General.
(a) Wines manufactured, produced,
bottled in bottles packed in containers,
or packaged in casks or other bulk
PO 00000
Frm 00027
Fmt 4702
Sfmt 4702
containers in the United States on
which an internal revenue tax has been
paid or determined, and which are filled
on premises qualified under this chapter
to package or bottle wines, may, subject
to this part, be:
(1) Exported;
(2) Laden for use on the vessels or
aircraft described in § 28.21; or
(3) Transferred to and deposited in a
foreign-trade zone for exportation or for
storage pending exportation.
(b) On receipt by the appropriate TTB
officer of required evidence of
exportation, lading for use, or transfer,
there shall be allowed a drawback equal
in amount to the tax found to have been
paid or determined on the wines.
(c) Wines on which drawback is paid
under this subpart may not be
substituted for imported merchandise
for purposes of drawback of tax under
section 313(j)(2) of the Tariff Act of
1930, as amended (19 U.S.C. 1313(j)(2)).
See 19 CFR 191.32(b)(4).
7. Section 28.221 is revised to read as
follows:
§ 28.221
General.
(a) Beer brewed or produced in the
United States and on which the internal
revenue tax has been paid may, subject
to this part, be:
(1) Exported;
(2) Delivered for use as supplies on
the vessels and aircraft described in
§ 28.21; or
(3) Transferred to and deposited in a
foreign-trade zone for exportation or for
storage pending exportation.
(b) A claim for drawback of taxes
found to have been paid may be filed
only by the producing brewer or his
duly authorized agent. On receipt by the
appropriate TTB officer of required
evidence of such exportation, delivery
for use, or transfer, there shall be
allowed a drawback equal in amount to
the tax found to have been paid on such
beer.
(c) Beer on which drawback is paid
under this subpart may not be
substituted for imported merchandise
for purposes of drawback of tax under
section 313(j)(2) of the Tariff Act of
1930, as amended (19 U.S.C. 1313(j)(2)).
See 19 CFR 191.32(b)(4).
PART 44—EXPORTATION OF
TOBACCO PRODUCTS AND
CIGARETTE PAPERS AND TUBES,
WITHOUT PAYMENT OF TAX, OR WITH
DRAWBACK OF TAX
8. The authority citation for part 44
continues to read as follows:
Authority: 26 U.S.C. 5142, 5143, 5146,
5701, 5703–5705, 5711–5713, 5721–5723,
5731, 5741, 5751, 5754, 6061, 6065, 6151,
E:\FR\FM\15OCP1.SGM
15OCP1
Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Proposed Rules
6402, 6404, 6806, 7011, 7212, 7342, 7606,
7805; 31 U.S.C. 9301, 9303, 9304, 9306.
9. Section 44.61 is amended by
adding a new paragraph (c) to read as
follows:
§ 44.61 Removals, withdrawals, and
shipments authorized.
*
*
*
*
*
(c) Tobacco products and cigarette
papers and tubes removed from a
factory or an export warehouse, and
cigars withdrawn from a customs
bonded warehouse, without payment of
tax under this subpart may not be
substituted for imported merchandise
for purposes of drawback of tax under
section 313(j)(2) of the Tariff Act of
1930, as amended (19 U.S.C. 1313(j)(2)).
See 19 CFR 191.32(b)(4).
10. Section 44.221 is amended by
designating the existing text as
paragraph (a) and adding a new
paragraph (b) to read as follows:
§ 44.221
Application of drawback of tax.
*
*
*
*
*
(b) Tobacco products and cigarette
papers and tubes on which drawback is
allowed under this subpart may not be
substituted for imported merchandise
for purposes of drawback of tax under
section 313(j)(2) of the Tariff Act of
1930, as amended (19 U.S.C. 1313(j)(2)).
See 19 CFR 191.32(b)(4).
*
*
*
*
*
Signed: September 3, 2009.
John J. Manfreda,
Administrator.
Approved: September 17, 2009.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. E9–24791 Filed 10–14–09; 8:45 am]
BILLING CODE 4810–31–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 151
46 CFR Part 162
[USCG–2001–10486]
erowe on DSK5CLS3C1PROD with PROPOSALS-1
RIN 1625–AA32
Standards for Living Organisms in
Ships’ Ballast Water Discharged in
U.S. Waters
Coast Guard, DHS.
Notice; extension of comment
periods.
AGENCY:
ACTION:
SUMMARY: The Coast Guard is extending
the periods for public comment on the
VerDate Nov<24>2008
15:05 Oct 14, 2009
Jkt 220001
notice of proposed rulemaking (NPRM)
and the Draft Programmatic
Environmental Impact Statement
(DPEIS) for the rulemaking entitled
‘‘Standards for Living Organisms in
Ships’ Ballast Water’’ (Docket No.
USCG–2001–10486).
DATES: Comments and related material
for the NPRM and the DPEIS must either
be submitted to our online docket via
https://www.regulations.gov on or before
the new date for the close of the
comment period, December 4, 2009, or
reach the Docket Management Facility
by that date.
ADDRESSES: You may submit comments
identified by Coast Guard docket
number USCG–2001–10486 to the
Docket Management Facility at the U.S.
Department of Transportation. To avoid
duplication, please use only one of the
following methods:
(1) Federal eRulemaking Portal:
https://www.regulations.gov.
(2) Mail: Docket Management Facility
(M–30), U.S. Department of
Transportation, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590–
0001.
(3) Hand delivery: Docket
Management Facility (M–30), 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. The telephone
number is 202–366–9329.
(4) Fax: 202–493–2251.
To avoid duplication, please use only
one of these four methods. See the
‘‘Public Participation and Request for
Comments’’ portion of the
SUPPLEMENTARY INFORMATION section
below for instructions on submitting
comments.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this proposed
rulemaking, call or e-mail Mr. John
Morris, Project Manager, Environmental
Standards Division, U.S. Coast Guard
Headquarters, telephone 202–372–1433,
e-mail John.C.Morris@uscg.mil. If you
have questions on viewing or submitting
material to the docket, call Ms. Renee
Wright, Chief, Dockets, Department of
Transportation, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION:
Public Participation and Request for
Comments
We encourage you to participate in
this aspect of the rulemaking by
submitting comments and related
materials. All comments received will
be posted, without change, to https://
PO 00000
Frm 00028
Fmt 4702
Sfmt 4702
52941
www.regulations.gov and will include
any personal information you have
provided.
Submitting Comments
If you submit a comment, please
include the docket number for this
rulemaking (USCG–2001–10486),
indicate the specific section of the
document to which each comment
applies, and provide a reason for each
suggestion or recommendation. You
may comment on either the NPRM or
the DPEIS or both. You may submit your
comments and material online or by fax,
mail, or hand delivery, but please use
only one of these means. We
recommend that you include your name
and a mailing address, an e-mail
address, or a phone number in the body
of your document so that we can contact
you if we have questions regarding your
submission.
To submit your comment online, go to
https://www.regulations.gov and click on
the ‘‘submit a comment’’ box, which
will then become highlighted in blue.
Insert ‘‘USCG–2001–10486’’ in the
Keyword box, click ‘‘Search’’, and then
click on the balloon shape in the
Actions column. If you submit your
comments by mail or hand delivery,
submit them in an unbound format, no
larger than 81⁄2 by 11 inches, suitable for
copying and electronic filing. If you
submit comments by mail and would
like to know that they reached the
Facility, please enclose a stamped, selfaddressed postcard or envelope.
We will consider all comments and
material received during the comment
period and may change this proposed
rule or the DPEIS based on your
comments.
Viewing Comments and Documents
To view comments, as well as
documents mentioned in this preamble
as being available in the docket, go to
https://www.regulations.gov at any time.
Enter the docket number for this
rulemaking (USCG–2001–10486) in the
Keyword box, and click ‘‘Search’’. You
may also visit the Docket Management
Facility in Room W12–140 on the
ground floor of the DOT West Building,
1200 New Jersey Avenue, SE.,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays. We have an
agreement with the Department of
Transportation to use the Docket
Management Facility.
Privacy Act
Anyone can search the electronic
form of all comments received into any
of our dockets by the name of the
individual submitting the comment (or
E:\FR\FM\15OCP1.SGM
15OCP1
]]>Agencies
[Federal Register Volume 74, Number 198 (Thursday, October 15, 2009)]
[Proposed Rules]
[Pages 52937-52941]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-24791]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Parts 28 and 44
[Docket No. TTB-2009-0005; Notice No. 100]
RIN 1513-AB77
Drawback of Internal Revenue Taxes
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to amend
its regulations to clarify the relationship between tax payment under
the Internal Revenue Code of 1986 and drawback of tax under the Tariff
Act of 1930. The proposal provides conforming amendments to reflect
proposed Customs and Border Protection regulations stating that
domestic merchandise on which no tax is paid under the Internal Revenue
Code may not be substituted for imported merchandise for purposes of
claims for drawback of tax under the customs laws and regulations.
DATES: We must receive your written comments on or before December 14,
2009.
ADDRESSES: You may send comments on this notice to one of the following
addresses:
https://www.regulations.gov: Use the comment form for this
notice on the Federal e-rulemaking portal, Regulations.gov, to submit
comments via the Internet;
Mail: Director, Regulations and Rulings Division, Alcohol
and Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412.
Hand Delivery/Courier in Lieu of Mail: Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street, NW., Suite 200-E, Washington, DC
20005.
See the Public Participation section of this notice for specific
instructions and requirements for submitting comments, and for
information on how to request a public hearing.
You may view copies of this notice, selected supporting materials,
and the comments we receive about this proposal within Docket No. TTB-
2009-0005 at https://www.regulations.gov. A direct link to this docket
is posted on the TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 100. You also may view copies of
this notice, all supporting materials, and the comments we receive
about this proposal by
[[Page 52938]]
appointment at the TTB Information Resource Center, 1310 G Street, NW.,
Washington, DC 20220. Please call 202-453-2270 to make an appointment.
FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Regulations and
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
Street, NW., Suite 200-E, Washington, DC 20220; telephone 202-453-2097.
SUPPLEMENTARY INFORMATION:
Background
Taxation of Distilled Spirits, Wines, Beer, and Tobacco Products Under
the Internal Revenue Code of 1986
Chapter 51 of the Internal Revenue Code of 1986 (IRC) sets forth
excise tax collection and related provisions applicable to distilled
spirits, wines, and beer. Chapter 52 of the IRC contains similar
provisions applicable to tobacco products and cigarette papers and
tubes.
Under Chapter 51, a Federal excise tax is imposed on all wines and
distilled spirits produced in or imported into the United States. 26
U.S.C. 5001, 5041. A Federal excise tax also is imposed on beer brewed
or produced, and removed for consumption or sale within the United
States, or imported into the United States. 26 U.S.C. 5051. For
domestically-produced wine, the tax is imposed at the conclusion of
fermentation or removal from the fermenter (see 27 CFR 24.176). For
domestically-produced distilled spirits, the tax is imposed at the time
that the product comes into existence. 26 U.S.C. 5001(b). For
domestically-produced beer, the tax is imposed when the product is
removed for consumption or sale. 26 U.S.C. 5051. For imported wine,
distilled spirits, and beer, the tax is imposed when the product is
imported into the United States.
However, Federal excise taxes on imported and domestically-produced
wine, distilled spirits, and beer are generally not paid or determined
until the products are removed from bonded premises or from customs
custody for consumption or sale. 26 U.S.C. 5041, 5061, 5006, 5007,
5054. Domestically-produced wine, distilled spirits, and beer may be
exported without payment of the Federal excise tax. 26 U.S.C. 5362(c),
5214(a), 5053. In addition, on the exportation of domestically-produced
wine, distilled spirits, or beer that was removed from bonded premises
with payment of tax, drawback is allowed in an amount equal to the tax
paid. 26 U.S.C. 5062, 5055.
Under Chapter 52, a Federal excise tax is imposed on all tobacco
products and cigarette papers and tubes manufactured in or imported
into the United States. 26 U.S.C. 5701. The tax on domestically-
produced tobacco products and cigarette papers and tubes is imposed at
the time that the product comes into existence, that is, when a product
meets one of the definitions under the IRC. The Federal excise tax on
imported and domestically-produced tobacco products and cigarette
papers and tubes is generally not paid or determined until the products
are released from customs custody or removed from bonded premises. 26
U.S.C. 5702, 5703. Tobacco products and cigarette papers and tubes may
be removed from bonded premises, without the payment of Federal excise
tax, for export. 26 U.S.C. 5704.
Regulations implementing the provisions of Chapters 51 and 52 of
the IRC are contained in 27 CFR chapter 1. The Alcohol and Tobacco Tax
and Trade Bureau (TTB) within the Department of the Treasury is
responsible for the administration of Chapters 51 and 52 and the
regulations promulgated thereunder.
Drawback Under the Tariff Act of 1930
Section 313 of the Tariff Act of 1930, as amended (19 U.S.C. 1313),
provides for the drawback or refund of duties, taxes, and fees paid on
imported merchandise if that merchandise is subsequently exported or
destroyed under customs supervision. Paragraph (2) of subsection (j),
hereafter referred to as ``(j)(2) drawback,'' permits the substitution
of other merchandise for the imported merchandise for purposes of the
exportation or destruction requirement.
Specifically, the (j)(2) drawback provision allows the payment of
drawback, not to exceed 99 percent of the duties, taxes, and fees paid
on the imported merchandise, based on the exportation or destruction of
``any other merchandise (whether imported or domestic)'' that: (1) Is
commercially interchangeable with the imported merchandise on which
duties, taxes, and fees were paid, (2) is exported or destroyed within
3 years of the date of importation of the imported merchandise, and (3)
before such exportation or destruction, is not used within the United
States and is in the possession of the party claiming drawback, that
is, either the importer of the imported merchandise or a person who
receives from the importer a certificate of delivery transferring to
that person the imported merchandise or commercially interchangeable
merchandise or any combination of the two (and with the transferred
merchandise being treated as the imported merchandise). The (j)(2)
drawback provision also includes a standard for commercial
interchangeability for wine, that is, ``wine of the same color having a
price variation not to exceed 50 percent between the imported wine and
the exported wine.''
Regulations implementing section 313 are set forth in 19 CFR part
191. Subpart C of part 191 concerns unused merchandise drawback and
includes, in Sec. 191.32, standards applicable to (j)(2) drawback
claims. The Bureau of Customs and Border Protection (CBP) is
responsible for the administration of section 313 and the regulations
promulgated thereunder.
Proposed CBP and TTB Regulatory Changes
In recent years CBP has received and approved a number of (j)(2)
drawback claims involving imported bottled and bulk wine and
domestically-produced wine. A hypothetical example of how such a
transaction could work is as follows: A domestic winery imports 100
cases of bottled wine, pays Federal excise tax on the wine, and sells
the imported wine in the United States; the domestic winery then
exports 100 cases of its domestic wine without payment of Federal
excise tax; the domestic winery then files a (j)(2) drawback claim with
CBP, on the basis that the 100 cases of domestically-produced wine are
commercially interchangeable with the 100 cases of imported wine; and,
finally, the domestic winery receives a refund of 99 percent of the
Federal excise taxes that it paid on the 100 cases of imported wine.
In the scenario described above, only 1 percent of the Federal
excise tax on the imported wine is ultimately received into the U.S.
Treasury. Thus, (j)(2) drawback in effect allows imported wine to be
introduced into the U.S. market 99 percent free of Federal excise tax.
Although the (j)(2) drawback claims involving the drawback or refund of
IRC tax that CBP has processed have been limited to wine, under the
present statutory and regulatory framework, other products that are
subject to excise tax under IRC Chapters 51 and 52 could be the subject
of claims for (j)(2) drawback.
Based on a review of the applicable statutory provisions, the
Department of the Treasury has concluded that the practice of allowing
(j)(2) drawback claims in circumstances in which internal revenue taxes
have not been paid on the substituted domestic product is incompatible
with the intent of Congress in levying excise taxes under the IRC and
extends beyond the intent of Congress for administering
[[Page 52939]]
drawback under the comprehensive framework of section 313. In order to
address these concerns, CBP in a document published in this issue of
the Federal Register is proposing to amend its regulations to preclude
the filing of a claim covering drawback of tax under subsection (j)(2)
if no tax was paid on the substituted domestically-produced
merchandise.
In view of the relationship between (j)(2) drawback claims and
excise tax liability under Chapters 51 and 52 of the IRC as discussed
above and as reflected in the proposed new CBP regulatory texts, TTB
believes that it would be appropriate to add to the TTB regulations
conforming amendments that alert the reader to the effect of the new
CBP regulatory provision as regards alcohol and tobacco products
exported without payment of tax or with drawback of tax. TTB notes in
this regard that the IRC vests broad authority in the Secretary of the
Treasury to promulgate regulations governing the removal of alcohol and
tobacco products for export without payment of tax in order to ensure
protection of the revenue. See 26 U.S.C. 5053 for beer, 5214(a) for
distilled spirits, 5362(c) for wine, and 5704 for tobacco products.
Furthermore, the IRC vests broad authority in the Secretary of the
Treasury to promulgate regulations needed for the enforcement of the
IRC. See 26 U.S.C. 7805(a). TTB believes that the proposed conforming
amendments are needed to contribute to the enforcement and integrity of
the excise tax system.
Accordingly, this document proposes six amendments to part 28 of
the TTB regulations (27 CFR part 28), which contains rules regarding
the exportation of distilled spirits, wine, and beer without payment of
tax and with drawback of tax. Similarly, this document proposes two
amendments to part 44 of the TTB regulations (27 CFR part 44), which
contains rules regarding the exportation of tobacco products and
cigarette papers and tubes without payment of tax and with drawback of
tax. Although the only substantive text change in each affected section
involves the addition of a reference to the new CBP rule, in several
cases the entire section is revised in order to eliminate the use of
undesignated introductory and concluding text and thus facilitate
addition of the new provision.
Public Participation
Comments Invited
We invite comments from interested members of the public on this
proposed rulemaking. Please submit your comments by the closing date
shown above in this notice. Your comments must reference Notice No. 100
and include your name and mailing address. Your comments also must be
made in English, be legible, and be written in language acceptable for
public disclosure. We do not acknowledge receipt of comments, and we
consider all comments as originals.
Submitting Comments
You may submit comments on this notice by using one of the
following three methods:
Federal e-Rulemaking Portal: You may send comments via the
online comment form associated with this notice in Docket No. TTB-2009-
0005 on ``Regulations.gov,'' the Federal e-rulemaking portal, at https://www.regulations.gov. A link to that docket is available under Notice
No. 100 on the TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml. Supplemental files may be attached to comments
submitted via Regulations.gov. For information on how to use
Regulations.gov, click on the site's Help or FAQ tabs.
U.S. Mail: You may send comments via postal mail to the
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and
Trade Bureau, P.O. Box 14412, Washington, DC 20044-4412.
Hand Delivery/Courier: You may hand-carry your comments or
have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau,
1310 G Street, NW., Suite 200-E, Washington, DC 20005.
If you are commenting on behalf of an association, business, or
other entity, your comment must include the entity's name as well as
your name and position title. If you comment via Regulations.gov,
please include the entity's name in the ``Organization'' blank of the
comment form. If you comment via postal mail, please submit your
entity's comment on letterhead.
You may also write to the Administrator before the comment closing
date to ask for a public hearing. The Administrator reserves the right
to determine whether to hold a public hearing.
Confidentiality
All submitted comments and attachments are part of the public
record and subject to disclosure. Do not enclose any material in your
comments that you consider to be confidential or that is inappropriate
for public disclosure.
Public Disclosure
On the Federal e-rulemaking portal, Regulations.gov, we will post,
and the public may view, copies of this notice, selected supporting
materials, and any electronic or mailed comments we receive about this
proposal. A direct link to the Regulations.gov docket containing this
notice and the posted comments received on it is available on the TTB
Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml
under Notice No. 100. You may also reach the docket containing this
notice and the posted comments received on it through the
Regulations.gov search page at https://www.regulations.gov.
All posted comments will display the commenter's name, organization
(if any), city, and State, and, in the case of mailed comments, all
address information, including e-mail addresses. We may omit voluminous
attachments or material that we consider unsuitable for posting.
You and other members of the public may view copies of this notice,
any supporting materials, and any electronic or mailed comments we
receive about this proposal by appointment at the TTB Information
Resource Center, 1310 G Street, NW., Washington, DC 20220. You may also
obtain copies at 20 cents per 8.5 x 11-inch page. Contact our
information specialist at the above address or by telephone at 202-453-
2270 to schedule an appointment or to request copies of comments or
other materials.
Regulatory Analysis and Notices
Executive Order 12866
This proposed rule is not a significant regulatory action as
defined in Executive Order 12866. Therefore, a regulatory assessment is
not required.
Regulatory Flexibility Act
Pursuant to the requirements of the Regulatory Flexibility Act (5
U.S.C. chapter 6), we certify that this notice of proposed rulemaking
will not have a significant economic impact on a substantial number of
small entities. The proposed rule imposes no substantive requirements
and therefore will not impose, or otherwise cause, a significant
increase in reporting, recordkeeping, or other compliance burdens on a
substantial number of small entities. Accordingly, a regulatory
flexibility analysis is not required.
Drafting Information
Francis W. Foote of the Regulations and Rulings Division drafted
this document.
[[Page 52940]]
List of Subjects
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 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.
Authority and Issuance
For the reasons explained in the preamble, TTB proposes to amend
chapter I of title 27 of the Code of Federal Regulations as follows:
PART 28--EXPORTATION OF ALCOHOL
1. The authority citation for part 28 is revised to read as
follows:
Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C.
5001, 5007, 5008, 5041, 5051, 5053, 5054, 5061, 5111, 5112, 5114,
5121, 5122, 5124, 5201, 5205, 5207, 5214, 5232, 5273, 5301, 5313,
5362, 5555, 6302, 7805; 27 U.S.C. 203, 205; 44 U.S.C. 3504(h).
2. Section 28.91 is amended by adding a new paragraph (c) to read
as follows:
Sec. 28.91 General.
* * * * *
(c) Distilled spirits withdrawn without payment of tax under this
subpart may not be substituted for imported merchandise for purposes of
drawback of tax under section 313(j)(2) of the Tariff Act of 1930, as
amended (19 U.S.C. 1313(j)(2)). See 19 CFR 191.32(b)(4).
3. Section 28.121 is revised to read as follows:
Sec. 28.121 General.
(a) Wine may, subject to this part, be withdrawn from a bonded wine
cellar, without payment of tax, for:
(1) Exportation;
(2) Use on the vessels and aircraft described in Sec. 28.21;
(3) Transfer to and deposit in a foreign-trade zone for exportation
or for storage pending exportation;
(4) Transfer to and deposit in a customs bonded warehouse as
provided in Sec. 28.27; or
(5) Transportation to and deposit in a manufacturing bonded
warehouse.
(b) All such withdrawals shall be made under the applicable bond
prescribed in subpart D.
(c) Wine withdrawn without payment of tax under this subpart may
not be substituted for imported merchandise for purposes of drawback of
tax under section 313(j)(2) of the Tariff Act of 1930, as amended (19
U.S.C. 1313(j)(2)). See 19 CFR 191.32(b)(4).
4. Section 28.141 is amended by adding a new paragraph (d) to read
as follows:
Sec. 28.141 General.
* * * * *
(d) Customs drawback claims. Beer removed without payment of tax
under this subpart may not be substituted for imported merchandise for
purposes of drawback of tax under section 313(j)(2) of the Tariff Act
of 1930, as amended (19 U.S.C. 1313(j)(2)). See 19 CFR 191.32(b)(4).
5. Section 28.171 is revised to read as follows:
Sec. 28.171 General.
(a) Distilled spirits manufactured, produced, bottled in bottles,
packed in containers, or packaged in casks or other bulk containers in
the United States on which an internal revenue tax has been paid or
determined, and which have been marked under the provisions of 27 CFR
part 19 and of this part, as applicable, especially for export with
benefit of drawback may be:
(1) Exported;
(2) Laden for use on the vessels or aircraft described in Sec.
28.21;
(3) Transferred to and deposited in a foreign-trade zone for
exportation or for storage pending exportation; or
(4) Transferred to and deposited in a customs bonded warehouse as
provided for in Sec. 28.26(b).
(b) On receipt by the appropriate TTB officer of required evidence
of exportation, lading for use, or transfer, there shall be allowed to
the bottler (or packager) of the spirits, drawback equal in amount to
the tax found to have been paid or determined on the spirits.
(c) Distilled spirits on which drawback is paid under this subpart
may not be substituted for imported merchandise for purposes of
drawback of tax under section 313(j)(2) of the Tariff Act of 1930, as
amended (19 U.S.C. 1313(j)(2)). See 19 CFR 191.32(b)(4).
6. Section 28.211 is revised to read as follows:
Sec. 28.211 General.
(a) Wines manufactured, produced, bottled in bottles packed in
containers, or packaged in casks or other bulk containers in the United
States on which an internal revenue tax has been paid or determined,
and which are filled on premises qualified under this chapter to
package or bottle wines, may, subject to this part, be:
(1) Exported;
(2) Laden for use on the vessels or aircraft described in Sec.
28.21; or
(3) Transferred to and deposited in a foreign-trade zone for
exportation or for storage pending exportation.
(b) On receipt by the appropriate TTB officer of required evidence
of exportation, lading for use, or transfer, there shall be allowed a
drawback equal in amount to the tax found to have been paid or
determined on the wines.
(c) Wines on which drawback is paid under this subpart may not be
substituted for imported merchandise for purposes of drawback of tax
under section 313(j)(2) of the Tariff Act of 1930, as amended (19
U.S.C. 1313(j)(2)). See 19 CFR 191.32(b)(4).
7. Section 28.221 is revised to read as follows:
Sec. 28.221 General.
(a) Beer brewed or produced in the United States and on which the
internal revenue tax has been paid may, subject to this part, be:
(1) Exported;
(2) Delivered for use as supplies on the vessels and aircraft
described in Sec. 28.21; or
(3) Transferred to and deposited in a foreign-trade zone for
exportation or for storage pending exportation.
(b) A claim for drawback of taxes found to have been paid may be
filed only by the producing brewer or his duly authorized agent. On
receipt by the appropriate TTB officer of required evidence of such
exportation, delivery for use, or transfer, there shall be allowed a
drawback equal in amount to the tax found to have been paid on such
beer.
(c) Beer on which drawback is paid under this subpart may not be
substituted for imported merchandise for purposes of drawback of tax
under section 313(j)(2) of the Tariff Act of 1930, as amended (19
U.S.C. 1313(j)(2)). See 19 CFR 191.32(b)(4).
PART 44--EXPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND
TUBES, WITHOUT PAYMENT OF TAX, OR WITH DRAWBACK OF TAX
8. The authority citation for part 44 continues to read as follows:
Authority: 26 U.S.C. 5142, 5143, 5146, 5701, 5703-5705, 5711-
5713, 5721-5723, 5731, 5741, 5751, 5754, 6061, 6065, 6151,
[[Page 52941]]
6402, 6404, 6806, 7011, 7212, 7342, 7606, 7805; 31 U.S.C. 9301,
9303, 9304, 9306.
9. Section 44.61 is amended by adding a new paragraph (c) to read
as follows:
Sec. 44.61 Removals, withdrawals, and shipments authorized.
* * * * *
(c) Tobacco products and cigarette papers and tubes removed from a
factory or an export warehouse, and cigars withdrawn from a customs
bonded warehouse, without payment of tax under this subpart may not be
substituted for imported merchandise for purposes of drawback of tax
under section 313(j)(2) of the Tariff Act of 1930, as amended (19
U.S.C. 1313(j)(2)). See 19 CFR 191.32(b)(4).
10. Section 44.221 is amended by designating the existing text as
paragraph (a) and adding a new paragraph (b) to read as follows:
Sec. 44.221 Application of drawback of tax.
* * * * *
(b) Tobacco products and cigarette papers and tubes on which
drawback is allowed under this subpart may not be substituted for
imported merchandise for purposes of drawback of tax under section
313(j)(2) of the Tariff Act of 1930, as amended (19 U.S.C. 1313(j)(2)).
See 19 CFR 191.32(b)(4).
* * * * *
Signed: September 3, 2009.
John J. Manfreda,
Administrator.
Approved: September 17, 2009.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. E9-24791 Filed 10-14-09; 8:45 am]
BILLING CODE 4810-31-P
