Standards for Pipe Tobacco and Roll-Your-Own Tobacco; Request for Public Comment, 52913-52915 [2011-21612]
Download as PDF
<![CDATA[
Federal Register / Vol. 76, No. 164 / Wednesday, August 24, 2011 / Proposed Rules
proposal within Docket No. TTB–2010–
0004 at https://www.regulations.gov. A
link to this Regulations.gov docket is
posted on the TTB Web site at https://
www.ttb.gov/regulations_laws/
all_rulemaking.shtml under Notice No.
106. You also may view copies of all
published notices, all supporting
materials, and any comments we receive
about this proposal by appointment at
the TTB Information Resource Center,
1310 G Street, NW., Washington, DC
20220. Please call 202–453–2270 to
make an appointment.
[FR Doc. 2011–21293 Filed 8–23–11; 8:45 am]
BILLING CODE 4910–13–C
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Parts 40, 41, 44, 45, and 46
[Docket No. TTB–2010–0004; Notice No.
120; re: Notice No. 106]
RIN 1513–AB78
Standards for Pipe Tobacco and RollYour-Own Tobacco; Request for Public
Comment
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Advance notice of proposed
rulemaking; reopening of comment
period.
AGENCY:
FOR FURTHER INFORMATION CONTACT:
Christopher M. Thiemann, Regulations
and Rulings Division, Alcohol and
Tobacco Tax and Trade Bureau, 1310 G
Street, NW., Suite 200E, Washington,
DC 20220; telephone 202–453–1039,
Ext. 138.
SUPPLEMENTARY INFORMATION:
SUMMARY:
TTB Authority
You may send comments on
this notice to one of the following
addresses:
• https://www.regulations.gov: Use the
comment form for Notice No. 106 as
posted within Docket No. TTB–2010–
0004 on ‘‘Regulations.gov,’’ the Federal
e-rulemaking portal, 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 all published
notices, selected supporting materials,
and the comments received about this
Chapter 52 of the Internal Revenue
Code of 1986 (IRC) sets forth the Federal
excise tax and related provisions that
apply to tobacco products and
processed tobacco manufactured, or
imported into, the United States.
Section 5702(c) of the IRC (26 U.S.C.
5702(c)) defines the term ‘‘tobacco
products’’ as ‘‘cigars, cigarettes,
smokeless tobacco, pipe tobacco, and
roll-your-own tobacco.’’ Each of these
terms is also separately defined in
section 5702. Section 5702(p) states that
a manufacturer of processed tobacco is
‘‘any person who processes any tobacco
other than tobacco products’’ and that
‘‘the processing of tobacco shall not
include the farming or growing of
tobacco or the handling of tobacco
solely for sale, shipment, or delivery to
a manufacturer of tobacco products or
processed tobacco.’’
Regulations implementing the
provisions of chapter 52 of the IRC are
contained in 27 CFR parts 40
(Manufacture of tobacco products,
cigarette papers and tubes, and
processed tobacco), 41 (Importation of
tobacco products, cigarette papers and
tubes, and processed tobacco), 44
(Exportation of tobacco products and
cigarette papers and tubes, without
payment of tax, or with drawback of
tax), 45 (Removal of tobacco products
and cigarette papers and tubes, without
payment of tax, for use of the United
States), and 46 (Miscellaneous
regulations relating to tobacco products
and cigarette papers and tubes). These
statutory and regulatory provisions are
administered by the Alcohol and
Tobacco Tax and Trade Bureau (TTB).
The Alcohol and Tobacco Tax
and Trade Bureau (TTB) is reopening
the comment period for Notice No. 106,
which requested public comments on
standards to distinguish between pipe
tobacco and roll-your-own tobacco for
Federal excise tax purposes based on
certain physical characteristics of the
two products. This reopening of the
comment period solicits comments from
the public on certain issues that were
raised in public comments received in
response to Notice No. 106. This notice
also sets forth for possible public
comment the results of preliminary
laboratory analyses conducted by TTB.
DATES: We must receive written
comments on or before October 24,
2011.
wreier-aviles on DSKGBLS3C1PROD with PROPOSALS
ADDRESSES:
VerDate Mar<15>2010
16:47 Aug 23, 2011
Jkt 223001
PO 00000
Frm 00024
Fmt 4702
Sfmt 4702
52913
Publication of Notice No. 106
On July 22, 2010, TTB published in
the Federal Register (75 FR 42659) an
advance notice of proposed rulemaking,
Notice No. 106, in response to changes
made to the IRC tobacco provisions by
sections 701 and 702 of the Children’s
Health Insurance Program
Reauthorization Act of 2009 (CHIPRA).
These changes to the IRC included an
expansion of the definition of ‘‘rollyour-own tobacco’’ and an increase in
the tax rate applicable to pipe tobacco
and roll-your-own tobacco that resulted
in a significant difference in the tax
rates applicable to the two groups of
products. In Notice No. 106, TTB
described the heightened need for more
regulatory detail to clarify the difference
between pipe tobacco and roll-your-own
tobacco as a result of the tax rate
changes adopted by CHIPRA. In that
notice, TTB also described and
requested comments on six written
submissions concerning the distinctions
between pipe tobacco and roll-your-own
tobacco that it had received in response
to earlier rulemaking action regarding
CHIPRA.
Comments Received
TTB received 24 comments from
groups and individuals in response to
Notice No. 106. Commenters provided
input on the distinctions between pipe
tobacco and roll-your-own tobacco
based on physical characteristics as
described by the original six
submissions noted above. Commenters
also provided suggestions on other
characteristics which would be useful
for distinguishing between pipe tobacco
and roll-your-own tobacco, and made
other substantive comments about the
issues involved in the rulemaking. One
of the 24 comments was withdrawn by
the commenter after the close of the
comment period, and two of the
comments were not suitable for public
posting because they did not address the
issues presented for public comment.
The remaining 21 comments may be
viewed at the Regulations.gov Web site
referred to in the ADDRESSES section of
this document.
After the close of the Notice No. 106
comment period, TTB received a request
to meet with attorneys from Patton
Boggs LLP and their client, Liggett
Vector Brands LLC. At this meeting,
which took place on June 13, 2011,
Liggett Vector’s chief executive officer
and other company representatives
presented TTB with a proposal to use
certain physical characteristics to
distinguish between pipe tobacco and
roll-your-own tobacco that differ from
the standards proposed by other
E:\FR\FM\24AUP1.SGM
24AUP1
52914
Federal Register / Vol. 76, No. 164 / Wednesday, August 24, 2011 / Proposed Rules
wreier-aviles on DSKGBLS3C1PROD with PROPOSALS
commenters, described in Notice No.
106. The new proposal, which was
submitted as a slide presentation, is
now posted with the comments on
Notice No. 106 as Comment 23 and may
be viewed at the Regulations.gov Web
site referred to above.
Additionally, TTB believes it would
be appropriate to bring to the attention
of the public the results of preliminary
laboratory tests that TTB conducted on
a number of products labeled as pipe
tobacco and as roll-your-own tobacco
purchased by TTB from stores in the
Beltsville, Maryland, area on February
13, 2009. TTB subjected the samples to
a series of experiments to determine
whether there were analytical markers
that might be appropriate for further
evaluation as a means of distinguishing
between pipe tobacco and roll-your-own
tobacco, and to evaluate standards
submitted by industry members in
response to the CHIPRA rulemaking
actions in order to identify any
methodological issues with those
standards. A posting summarizing the
results of these laboratory tests may be
viewed at the Regulations.gov Web site
referred to under the ADDRESSES section
of this document. These posted results
do not constitute a TTB conclusion
regarding the distinction between pipe
tobacco and roll-your-own tobacco but
rather are merely intended as an
additional point of reference for
comments that the public may wish to
make regarding the basic issue raised in
Notice No. 106.
Determination To Re-Open Public
Comment Period
Because some of the comments
received in response to Notice No. 106
raise points that were not specifically
addressed in that notice, and in view of
the subsequent proposal from Liggett
Vector Brands LLC, TTB has determined
that it would be appropriate to reopen
the comment period for Notice No. 106
in order to afford industry members and
other interested parties an opportunity
to submit comments on those additional
points and proposals. In addition, the
Bureau believes that it would be
appropriate to make available for
comment preliminary results of the
laboratory procedures referred to above.
Accordingly, TTB is reopening the
comment period for Notice No. 106 for
an additional 60 days from the date of
publication of this document. After the
close of that 60-day comment period,
TTB will carefully review the comments
previously submitted in response to
Notice No. 106, the Liggett Vector
Brands LLC proposal, and any
additional comments submitted in
response to this document, in order to
VerDate Mar<15>2010
16:47 Aug 23, 2011
Jkt 223001
determine whether there is a sufficient
basis for the publication of a notice of
proposed rulemaking regarding specific
regulatory changes to clarify the
distinction between pipe tobacco and
roll-your-own tobacco.
Public Participation
Comments Invited
As discussed above, in addition to the
questions originally presented in Notice
No. 106, TTB invites interested
members of the public to comment on
the proposals made by various
commenters and on whether the
proposed standards are appropriate and
sufficient for distinguishing between
pipe tobacco and roll-your-own tobacco.
Further, we continue to invite
commenters to opine on how many of
the physical characteristics in a given
proposal should be present in order for
the product to be classified as ‘‘pipe
tobacco’’ (e.g., 2 of 5, 3 of 6). Finally,
because we recognize that roll-your-own
tobacco and pipe tobacco must be
classified relative to processed tobacco,
which is not taxed, we also invite
comments on how processed tobacco
may differ from the other two named
commodities.
If any comments include the results of
any analytical procedures by or on
behalf of the commenter, please provide
the specific analytical data on which the
comment is based. All comments
previously submitted to TTB regarding
Notice No. 106 will be given full
consideration, so there is no need to
resubmit such comments.
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 linked to Notice No. 106
as posting in Docket No. TTB–2010–
0004 on ‘‘Regulations.gov,’’ the Federal
e-rulemaking portal, at https://
www.regulations.gov. A link to the
docket is posted on the TTB Web site at
https://www.ttb.gov/regulations_laws/
all_rulemaking.shtml under Notice No.
106. 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
PO 00000
Frm 00025
Fmt 4702
Sfmt 4702
hand-carried to the Alcohol and
Tobacco Tax and Trade Bureau, 1310 G
Street, NW., Suite 200–E, Washington,
DC 20005.
Please submit your comments by the
closing date shown above in this notice.
Your comments must reference Notice
No. 106 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. TTB does not
acknowledge receipt of comments, and
the Bureau considers all comments as
originals.
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, TTB will post, and the
public may view, copies of all published
notices, selected supporting materials,
and all comments received in response
to this proposal within Docket No. TTB–
2010–0004. A link to this docket is
posted on the TTB Web site at https://
www.ttb.gov/regulations_laws/
all_rulemaking.shtml under Notice No.
106. You may also reach Docket No.
TTB–2010–0004 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.
TTB may omit voluminous attachments
or material that the Bureau considers
unsuitable for posting.
You and other members of the public
may view copies of all published
notices, all supporting materials, and all
electronic or mailed comments TTB has
received or will receive in response to
E:\FR\FM\24AUP1.SGM
24AUP1
Federal Register / Vol. 76, No. 164 / Wednesday, August 24, 2011 / Proposed Rules
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 the TTB
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.
Drafting Information
Christopher M. Thiemann of the
Regulations and Rulings Division
drafted this notice.
Signed: August 10, 2011.
Mary G. Ryan,
Acting Administrator.
[FR Doc. 2011–21612 Filed 8–23–11; 8:45 am]
BILLING CODE 4810–31–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2011–12; Order No. 810]
Periodic Reporting
Postal Regulatory Commission.
Notice of proposed rulemaking.
AGENCY:
ACTION:
The Commission is
establishing a docket in response to a
Postal Service request for an informal
rulemaking on proposed changes in
certain analytical methods used in
periodic reporting. The proposed
changes are identified as Proposals Four
through Eight. They affect, respectively,
Inbound International Mail; cost
assignment of certain flat sorting
operations; bias in mixed mail tallies;
and Express Mail. Establishing this
docket will allow the Commission to
consider the Postal Service’s proposal
and comments from the public.
DATES: Comments are due: September 9,
2011.
ADDRESSES: Submit comments
electronically by accessing the ‘‘Filing
Online’’ link in the banner at the top of
the Commission’s Web site (https://
www.prc.gov) or by directly accessing
the Commission’s Filing Online system
at https://www.prc.gov/prc-pages/filingonline/login.aspx. Commenters who
cannot submit their views electronically
should contact the person identified in
the FOR FURTHER INFORMATION CONTACT
section as the source for case-related
information for advice on alternatives to
electronic filing.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
at 202–789–6820 (case-related
information) or DocketAdmins@prc.gov
(electronic filing assistance).
wreier-aviles on DSKGBLS3C1PROD with PROPOSALS
SUMMARY:
VerDate Mar<15>2010
16:47 Aug 23, 2011
Jkt 223001
On August
8, 2011, the Postal Service filed a
petition pursuant to 39 CFR 3050.11
requesting that the Commission initiate
an informal rulemaking proceeding to
consider changes in the analytical
methods approved for use in periodic
reporting.1
Proposal Four: Proposed change in
method of reporting Revenue, Pieces,
and Weight (RPW) for Inbound
International Mail. Currently, in its
RPW report, the Postal Service estimates
the revenue that it receives from the
terminal dues system for six major
Inbound International Mail products by
developing a distribution key for those
products from the most recently
completed International Cost and
Revenue Analysis (ICRA) report. It
applies that key to international mail
revenues in the relevant General Ledger
accounts. Where it relies on this method
to estimate product revenues in the
RPW, it does not estimate pieces or
weight for those products.
Since Quarter 2 of FY 2010, the Postal
Service has been using the Foreign
Postal Settlement (FPS) system to settle
its international mail accounts. With
respect to inbound settlement, FPS
compiles revenue, piece, and weight
information by product stream from
billing documents/electronic messaging.
FPS posts revenue to the book of
accounts based on actual inbound
transactions processed, and on estimates
of transactions received, but not yet
processed. While the settlement process
is not completed until months after the
close of the calendar year, the FPS
system accrues revenue monthly, based
on the estimate of mail volume received
that month. When final settlement
occurs the following year, the difference
between the accrued amount and the
final settlement amount is posted to the
appropriate General Ledger account. Id.
at 6.
The Postal Service has developed
software that maps FPS inbound
product streams to the categories used
in the Inbound International RPW.
Proposal Four would replace the ICRA
distribution key method of estimating
the revenue of inbound products with
the more detailed and timely data
mapped from FPS. The Postal Service
explains that an incidental benefit of the
proposed mapping is that it would align
RPW reporting categories more closely
with the Mail Classification Schedule
than is the case currently.2
SUPPLEMENTARY INFORMATION:
1 Petition of the United States Postal Service
Requesting Initiation of a Proceeding to Consider
Proposed Changes in Analytical Principles
(Proposals Four–Eight), August 8, 2011 (Petition).
2 Id. at 8. As examples, the Postal Service notes
that Inbound Return Receipt and Inbound
PO 00000
Frm 00026
Fmt 4702
Sfmt 4702
52915
The Postal Service also proposes to
report prior-year settlement revenues
and currency gains and losses in Other
Mailing Services Revenue (Market
Dominant) and Other Shipping Services
Revenue (Competitive). The Postal
Service asserts that these entries have
no direct correlation with currentperiod activity, and therefore would
distort RPW relationships if they were
to continue to be included in the
current-period report. Id.
The Postal Service summarizes the
benefits to be gained from adopting
Proposal Four. It asserts that the
proposal would more closely align
revenue, pieces, and weight reported in
the Inbound International RPW with
current-year activity; that it would
report such information at a greater
level of detail than is done currently
(including volume and weight
information for the first time); that it
would separate current-year revenue
from prior-year revenue and currency
gains and losses; and that it would
correct some current misreporting of
inbound product data as outbound. Id.
at 4.
The Postal Service illustrates the
impact of Proposal Four in Attachments
B and C to the Petition. It asserts that
the impacts would be minor, and would
be confined to Inbound International
Mail. Id. at 10–12.
Proposal Five: Assigning Flats
Sequencing System (FSS) and
Automated Flats Sorting Machine
(AFSM) 100 Data to Separate Cost
Pools. Currently, cost data for FSS
operations are assigned to cost pools for
the AFSM 100 3-digit Management
Operating Data System (MODS)
operation. Proposal Five would assign
FSS cost data to FSS-specific cost pools.
The Postal Service supports the separate
break out of FSS costs by noting that the
FSS is a major new flats processing
system that is becoming widely
deployed. It also notes that the mail mix
in FSS operations can differ from that in
AFSM 100 operations because FSS can
be used to sequence non-saturation
carrier route flats, which would bypass
AFSM 100 operations. Id. at 13.
Proposal Five would assign the StandAlone Mail Prep machine (MODS
operation 530) operation and the FSS
Sorter (MODS operation 538)
distribution operations to the same cost
pool. The Postal Service argues that they
are interrelated in the same manner that
the prep operations for the AFSM 100
(MODS operation 140) and the AFSM
100/Automated Induction distribution
Restricted Delivery are currently misreported as
part of Outbound Ancillary Services, and that its
proposed mapping would correct this. Id. at 5.
E:\FR\FM\24AUP1.SGM
24AUP1
]]>Agencies
[Federal Register Volume 76, Number 164 (Wednesday, August 24, 2011)]
[Proposed Rules]
[Pages 52913-52915]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-21612]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Parts 40, 41, 44, 45, and 46
[Docket No. TTB-2010-0004; Notice No. 120; re: Notice No. 106]
RIN 1513-AB78
Standards for Pipe Tobacco and Roll-Your-Own Tobacco; Request for
Public Comment
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Advance notice of proposed rulemaking; reopening of comment
period.
-----------------------------------------------------------------------
SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) is
reopening the comment period for Notice No. 106, which requested public
comments on standards to distinguish between pipe tobacco and roll-
your-own tobacco for Federal excise tax purposes based on certain
physical characteristics of the two products. This reopening of the
comment period solicits comments from the public on certain issues that
were raised in public comments received in response to Notice No. 106.
This notice also sets forth for possible public comment the results of
preliminary laboratory analyses conducted by TTB.
DATES: We must receive written comments on or before October 24, 2011.
ADDRESSES: You may send comments on this notice to one of the following
addresses:
https://www.regulations.gov: Use the comment form for
Notice No. 106 as posted within Docket No. TTB-2010-0004 on
``Regulations.gov,'' the Federal e-rulemaking portal, 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 all published notices, selected supporting
materials, and the comments received about this proposal within Docket
No. TTB-2010-0004 at https://www.regulations.gov. A link to this
Regulations.gov docket is posted on the TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No.
106. You also may view copies of all published notices, all supporting
materials, and any comments we receive about this proposal by
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: Christopher M. Thiemann, Regulations
and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
Street, NW., Suite 200E, Washington, DC 20220; telephone 202-453-1039,
Ext. 138.
SUPPLEMENTARY INFORMATION:
TTB Authority
Chapter 52 of the Internal Revenue Code of 1986 (IRC) sets forth
the Federal excise tax and related provisions that apply to tobacco
products and processed tobacco manufactured, or imported into, the
United States. Section 5702(c) of the IRC (26 U.S.C. 5702(c)) defines
the term ``tobacco products'' as ``cigars, cigarettes, smokeless
tobacco, pipe tobacco, and roll-your-own tobacco.'' Each of these terms
is also separately defined in section 5702. Section 5702(p) states that
a manufacturer of processed tobacco is ``any person who processes any
tobacco other than tobacco products'' and that ``the processing of
tobacco shall not include the farming or growing of tobacco or the
handling of tobacco solely for sale, shipment, or delivery to a
manufacturer of tobacco products or processed tobacco.''
Regulations implementing the provisions of chapter 52 of the IRC
are contained in 27 CFR parts 40 (Manufacture of tobacco products,
cigarette papers and tubes, and processed tobacco), 41 (Importation of
tobacco products, cigarette papers and tubes, and processed tobacco),
44 (Exportation of tobacco products and cigarette papers and tubes,
without payment of tax, or with drawback of tax), 45 (Removal of
tobacco products and cigarette papers and tubes, without payment of
tax, for use of the United States), and 46 (Miscellaneous regulations
relating to tobacco products and cigarette papers and tubes). These
statutory and regulatory provisions are administered by the Alcohol and
Tobacco Tax and Trade Bureau (TTB).
Publication of Notice No. 106
On July 22, 2010, TTB published in the Federal Register (75 FR
42659) an advance notice of proposed rulemaking, Notice No. 106, in
response to changes made to the IRC tobacco provisions by sections 701
and 702 of the Children's Health Insurance Program Reauthorization Act
of 2009 (CHIPRA). These changes to the IRC included an expansion of the
definition of ``roll-your-own tobacco'' and an increase in the tax rate
applicable to pipe tobacco and roll-your-own tobacco that resulted in a
significant difference in the tax rates applicable to the two groups of
products. In Notice No. 106, TTB described the heightened need for more
regulatory detail to clarify the difference between pipe tobacco and
roll-your-own tobacco as a result of the tax rate changes adopted by
CHIPRA. In that notice, TTB also described and requested comments on
six written submissions concerning the distinctions between pipe
tobacco and roll-your-own tobacco that it had received in response to
earlier rulemaking action regarding CHIPRA.
Comments Received
TTB received 24 comments from groups and individuals in response to
Notice No. 106. Commenters provided input on the distinctions between
pipe tobacco and roll-your-own tobacco based on physical
characteristics as described by the original six submissions noted
above. Commenters also provided suggestions on other characteristics
which would be useful for distinguishing between pipe tobacco and roll-
your-own tobacco, and made other substantive comments about the issues
involved in the rulemaking. One of the 24 comments was withdrawn by the
commenter after the close of the comment period, and two of the
comments were not suitable for public posting because they did not
address the issues presented for public comment. The remaining 21
comments may be viewed at the Regulations.gov Web site referred to in
the ADDRESSES section of this document.
After the close of the Notice No. 106 comment period, TTB received
a request to meet with attorneys from Patton Boggs LLP and their
client, Liggett Vector Brands LLC. At this meeting, which took place on
June 13, 2011, Liggett Vector's chief executive officer and other
company representatives presented TTB with a proposal to use certain
physical characteristics to distinguish between pipe tobacco and roll-
your-own tobacco that differ from the standards proposed by other
[[Page 52914]]
commenters, described in Notice No. 106. The new proposal, which was
submitted as a slide presentation, is now posted with the comments on
Notice No. 106 as Comment 23 and may be viewed at the Regulations.gov
Web site referred to above.
Additionally, TTB believes it would be appropriate to bring to the
attention of the public the results of preliminary laboratory tests
that TTB conducted on a number of products labeled as pipe tobacco and
as roll-your-own tobacco purchased by TTB from stores in the
Beltsville, Maryland, area on February 13, 2009. TTB subjected the
samples to a series of experiments to determine whether there were
analytical markers that might be appropriate for further evaluation as
a means of distinguishing between pipe tobacco and roll-your-own
tobacco, and to evaluate standards submitted by industry members in
response to the CHIPRA rulemaking actions in order to identify any
methodological issues with those standards. A posting summarizing the
results of these laboratory tests may be viewed at the Regulations.gov
Web site referred to under the ADDRESSES section of this document.
These posted results do not constitute a TTB conclusion regarding the
distinction between pipe tobacco and roll-your-own tobacco but rather
are merely intended as an additional point of reference for comments
that the public may wish to make regarding the basic issue raised in
Notice No. 106.
Determination To Re-Open Public Comment Period
Because some of the comments received in response to Notice No. 106
raise points that were not specifically addressed in that notice, and
in view of the subsequent proposal from Liggett Vector Brands LLC, TTB
has determined that it would be appropriate to reopen the comment
period for Notice No. 106 in order to afford industry members and other
interested parties an opportunity to submit comments on those
additional points and proposals. In addition, the Bureau believes that
it would be appropriate to make available for comment preliminary
results of the laboratory procedures referred to above.
Accordingly, TTB is reopening the comment period for Notice No. 106
for an additional 60 days from the date of publication of this
document. After the close of that 60-day comment period, TTB will
carefully review the comments previously submitted in response to
Notice No. 106, the Liggett Vector Brands LLC proposal, and any
additional comments submitted in response to this document, in order to
determine whether there is a sufficient basis for the publication of a
notice of proposed rulemaking regarding specific regulatory changes to
clarify the distinction between pipe tobacco and roll-your-own tobacco.
Public Participation
Comments Invited
As discussed above, in addition to the questions originally
presented in Notice No. 106, TTB invites interested members of the
public to comment on the proposals made by various commenters and on
whether the proposed standards are appropriate and sufficient for
distinguishing between pipe tobacco and roll-your-own tobacco. Further,
we continue to invite commenters to opine on how many of the physical
characteristics in a given proposal should be present in order for the
product to be classified as ``pipe tobacco'' (e.g., 2 of 5, 3 of 6).
Finally, because we recognize that roll-your-own tobacco and pipe
tobacco must be classified relative to processed tobacco, which is not
taxed, we also invite comments on how processed tobacco may differ from
the other two named commodities.
If any comments include the results of any analytical procedures by
or on behalf of the commenter, please provide the specific analytical
data on which the comment is based. All comments previously submitted
to TTB regarding Notice No. 106 will be given full consideration, so
there is no need to resubmit such comments.
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 linked to Notice No. 106 as posting in Docket No.
TTB-2010-0004 on ``Regulations.gov,'' the Federal e-rulemaking portal,
at https://www.regulations.gov. A link to the docket is posted on the
TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 106. 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.
Please submit your comments by the closing date shown above in this
notice. Your comments must reference Notice No. 106 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. TTB does not acknowledge receipt of comments, and the
Bureau considers all comments as originals.
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, TTB will post,
and the public may view, copies of all published notices, selected
supporting materials, and all comments received in response to this
proposal within Docket No. TTB-2010-0004. A link to this docket is
posted on the TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 106. You may also reach Docket
No. TTB-2010-0004 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. TTB may omit
voluminous attachments or material that the Bureau considers unsuitable
for posting.
You and other members of the public may view copies of all
published notices, all supporting materials, and all electronic or
mailed comments TTB has received or will receive in response to
[[Page 52915]]
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 the TTB 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.
Drafting Information
Christopher M. Thiemann of the Regulations and Rulings Division
drafted this notice.
Signed: August 10, 2011.
Mary G. Ryan,
Acting Administrator.
[FR Doc. 2011-21612 Filed 8-23-11; 8:45 am]
BILLING CODE 4810-31-P
