Statement of Procedural Rules

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Parts 70 and 71

[T.D. ATF-378; CRT 93-137]

RIN 1512-AB53

Statement of Procedural Rules

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of

the Treasury.

ACTION: Treasury Decision, final rule.

-----------------------------------------------------------------------

SUMMARY: This Treasury decision removes regulations in 27 CFR Part 71,

Statement of Procedural Rules, which are duplicated in 31 CFR Part 1,

Disclosure of Records. It also transfers certain regulations from 27

CFR Part 71 to 27 CFR Part 70, resulting in the elimination of Part 71.

EFFECTIVE DATE: This final rule is effective August 12, 1996.

FOR FURTHER INFORMATION CONTACT: Nancy Bryce, Tax Compliance Branch,

(202-927-8220) or Eric O'Neal, Disclosure Branch, (202-927-8480),

Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, NW,

Washington, DC 20226.

SUPPLEMENTARY INFORMATION:

Background

On February 21, 1995, President Clinton announced a regulatory

reform initiative. As part of this initiative, each Federal agency was

instructed to conduct a page by page review of all agency regulations

to identify those which are obsolete or burdensome and those whose

goals could be better achieved through the private sector, self-

regulation or state and local governments. In cases where the agency's

review disclosed regulations which should be revised or eliminated, the

agency would, as soon as possible, propose administrative changes to

its regulations.

The page by page review of all regulations was completed as

directed by the President. In addition, on April 13, 1995, the Bureau

published Notice No. 809 (60 FR 18783) in the Federal Register

requesting comments from the public regarding which ATF regulations

could be improved or eliminated. As a result of the Bureau's analysis

of its regulations and the public comments received, a number of

regulatory initiatives were developed which are intended to accomplish

the President's goals.

Pursuant to the President's directive, ATF reviewed 27 CFR part 71,

Statement of Procedural Rules. ATF determined that there were

regulations in part 71 which were largely duplicative of regulations

found in 31 CFR part 1, Disclosure of Records. ATF also decided that

certain regulations in part 71 should be transferred to 27 CFR part 70,

Procedure and Administration, since they were related to the subject

matter of part 70.

Part 71 deals primarily with the procedures for the disclosure of

records and the publication of rules, regulations, forms, and

instructions. ATF has determined that the information contained in

sections 71.21, 71.22, 71.23, 71.24, and 71.25 is largely duplicative

of information already contained in 31 CFR part 1. Part 1 contains the

regulations of the Department of Treasury concerning disclosure of

records, and provides Appendices specifically relating to the component

Bureaus of the Treasury Department, including ATF.

ATF has decided that it is unnecessary to provide identical

information regarding the disclosure of records in two separate titles

of the Code of Federal Regulations. Thus, we are removing sections

71.21--71.25 and Appendix A. So that users of Title 27 will know where

to look for the ATF regulations on disclosure of records, we have added

a new section which cross-references the disclosure regulations of the

Department of Treasury. The new section also informs the public that

inquiries regarding the disclosure of ATF records may be directed to

the Chief, Disclosure Branch. The appendix in 31 CFR part 1 relating to

ATF will be updated to reflect the locations where the public may

inspect and copy ATF documents.

Certain sections within part 71 contain information which is not

found in 31 CFR part 1. Section 71.26 provides rules for disclosure of

certain specified matters relating to ATF. Section 71.27 explains the

procedures for requesting or demanding disclosure of records or

information in testimony or related matters. Section 71.41 explains the

procedures for issuing rules and regulations. Section 71.42 deals with

the issuance of forms and instructions. All of these sections will be

moved to 27 CFR part 70, since they relate to procedure and

administration. In addition, the pertinent sections in part 70 relating

to the scope of the part, and the definitions of terms used in the

part, are amended to reflect the new sections incorporated from part

71.

As a result of these changes, part 71 will be removed from the Code

of Federal Regulations. Certain other minor technical changes have been

made to the regulations which have been redesignated in this final

rule.

Paperwork Reduction Act

The provisions of the Paperwork Reduction Act of 1980, Public Law

96-511, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR

Part 1320, do not apply to this final rule because no requirement to

collect information is imposed.

Regulatory Flexibility Act

The provisions of the Regulatory Flexibility Act relating to a

final regulatory flexibility analysis (5 U.S.C. 604) are not applicable

to this final rule because the agency was not required to

[[Page 29955]]

publish a notice of proposed rulemaking under 5 U.S.C. 553 or any other

law.

Executive Order 12866

It has been determined that this rule is not a significant

regulatory action, because (1) it will not have an annual effect on the

economy of $100 million or more or adversely affect in a material way

the economy, a sector of the economy, productivity, competition, jobs,

the environment, public health or safety, or State, local or tribal

governments or communities; (2) Create a serious inconsistency or

otherwise interfere with an action taken or planned by another agency;

(3) Materially alter the budgetary impact of entitlements, grants, user

fees, or loan programs or the rights and obligations of recipients

thereof; or (4) Raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

Executive Order 12866.

Administrative Procedure Act

Because this final rule merely makes technical amendments and

conforming changes to improve the clarity of the regulations, and

removes information found elsewhere in the regulations, it is

unnecessary to issue this Treasury decision with notice and public

procedure under 5 U.S.C. 553(b).

Drafting Information

The principal author of this document is Nancy Bryce, Tax

Compliance Branch, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 70

Administrative practice and procedure, Authority delegations,

Claims, Customs duties and inspection, Disaster assistance, Excise

taxes, Freedom of information, Government employees, Law enforcement,

Law enforcement officers, Privacy.

Authority and Issuance

Chapter I of title 27, Code of Federal Regulations is amended as

follows:

Part 70--PROCEDURE AND ADMINISTRATION

Paragraph 1. The authority citation for Part 70 continues to read

as follows:

Authority: 5 U.S.C. 301 and 552; 26 U.S.C. 4181, 4182, 5064,

5146, 5203, 5207, 5275, 5367, 5415, 5504, 5555, 5684(a), 5741,

5761(b), 5802, 6020, 6021, 6064, 6102, 6155, 6159, 6201, 6203, 6204,

6301, 6303, 6311, 6313, 6314, 6321, 6323, 6325, 6326, 6331-6343,

6401-6404, 6407, 6416, 6423, 6501-6503, 6511, 6513, 6514, 6532,

6601, 6602, 6611, 6621, 6622, 6651, 6653, 6656, 6657, 6658, 6665,

6671, 6672, 6701, 6723, 6801, 6862, 6863, 6901, 7011, 7101, 7102,

7121, 7122, 7207, 7209, 7214, 7304, 7401, 7403, 7406, 7423, 7424,

7425, 7426, 7429, 7430, 7432, 7502, 7503, 7505, 7506, 7513, 7601-

7606, 7608-7610, 7622, 7623, 7653, 7805.

Secs. 71.26, 71.27, 71.41 and 71.42 [Redesignated]

Par. 2-3. Sections 71.26, 71.27, 71.41 and 71.42 are redesignated

as follows:

------------------------------------------------------------------------

New

Old section section

------------------------------------------------------------------------

71.26........................................................ 70.802

71.27........................................................ 70.803

71.41........................................................ 70.701

71.42........................................................ 70.702

------------------------------------------------------------------------

Par. 4. Section 70.1 is amended by adding paragraphs (e) and (f) to

read as follows:

Sec. 70.1 General.

* * * * *

(e) The regulations in Subpart H of this part relate to rules,

regulations and forms. The most important rules are issued as Treasury

decisions. This subpart also applies to the development and

availability of tax return forms and instructions and other forms and

instructions.

(f) The regulations in Subpart I of this part relate to the

disclosure of matters such as accepted offers in compromise,

applications for permits, certificates of label approval, true

identities of companies authorized to use trade names, information

relating to the tax classification of a roll of tobacco wrapped in

reconstituted tobacco, and comments received in response to a notice of

proposed rulemaking. This subpart also applies to requests or demands

for disclosure in testimony and in related matters.

Par. 5. Section 70.11 is amended by adding two definitions in

alphabetical order to read as follows:

Sec. 70.11 Meaning of Terms

* * * * *

Delegate. Any officer, employee, or agency of the Department of the

Treasury authorized by the Secretary of the Treasury directly, or

indirectly by one or more redelegations of authority, to perform the

function mentioned or described in the delegation order.

* * * * *

Secretary. The Secretary of the Treasury or designated delegate.

* * * * *

Par. 6. 27 CFR Part 70 is amended by adding a heading for Subpart

H, immediately preceding the redesignated Sec. 70.701, to read as

follows:

Subpart H--Rules, Regulations and Forms

Par. 7. The newly redesignated Sec. 70.701 is amended by revising

the first sentence of paragraph (a)(1), the first sentence in paragraph

(d)(1) and the ninth sentence in paragraph (d)(1), removing the last

sentence in paragraph (d)(1), and removing the last sentence in

paragraph (d)(2)(i)(B) to read as follows.

Sec. 70.701 Rules and regulations.

(a) Formulation. (1) Alcohol, tobacco, firearms, and explosives

rules take various forms. * * *

* * * * *

(d) Publication of rules and regulations. (1) General. All Bureau

of Alcohol, Tobacco and Firearms regulations and amendments thereto are

published as Treasury Decisions which appear in the Federal Register,

the Code of Federal Regulations, and the quarterly Alcohol, Tobacco and

Firearms (ATF) Bulletin. * * * The Bulletin is published quarterly and

may be obtained, on a subscription basis, from the Superintendent of

Documents, U.S. Government Printing Office, Washington, DC 20402.

* * * * *

Par. 8. The newly redesignated Sec. 70.702 is amended by revising

the first sentence of paragraph (a) to read as follows.

Sec. 70.702 Forms and instructions.

(a) Tax return forms and instructions. Tax forms and instructions

are developed by the Bureau to explain the requirements of Chapters 32,

51, 52, and 53 of Title 26 of the United States Code or regulations

issued thereunder, and are issued for the assistance of taxpayers in

exercising their rights and discharging their duties under such laws

and regulations. * * *

* * * * *

Par. 9 . A new section 70.801 is added to read as follows:

Sec. 70.801 Publicity of information.

For information relating to the disclosure of records that is not

contained in this Subpart I, see 31 CFR Part 1 and the Appendix of that

Part relating to the Bureau of Alcohol, Tobacco and Firearms. Direct

further questions to the Chief, Disclosure Branch, Washington, DC

20226, (202) 927-8480.

Par. 10. 27 CFR Part 70 is amended by adding a heading for Subpart

I, immediately preceding the new Sec. 70.801, to read as follows:

Subpart I--Disclosure

[[Page 29956]]

Par. 11. The newly redesignated Sec. 70.802 is amended by revising

the first sentence in paragraph (a), the first and third sentences in

paragraph (d), the first sentence in paragraph (f) and the second and

last sentences in paragraph (g) to read as follows:

Sec. 70.802 Rules for disclosure of certain specified matters.

(a) Accepted offers in compromise. For each offer in compromise

submitted and accepted pursuant to 26 U.S.C. 7122 in any case arising

under Chapter 32 (relating to firearms and ammunition excise taxes) and

Subtitle E (relating to alcohol, tobacco, and certain other excise

taxes) of Title 26 of the United States Code, under section 107 of the

Federal Alcohol Administration Act (27 U.S.C. 207) in any case arising

under that Act, or in connection with property seized under Title I of

the Gun Control Act of 1968 (18 U.S.C., Chapter 44) or title XI of the

Organized Crime Control Act of 1970 (18 U.S.C., Chapter 40), a copy of

the abstract and statement relating to the offer shall be kept

available for public inspection, for a period of 1 year from the date

of acceptance, in the office of the regional director (compliance) who

received the offer and in the office of the Assistant Director (Liaison

and Public Information), Bureau of Alcohol, Tobacco and Firearms,

Washington, DC 20226. * * *

(d) Information relating to certificates of label approval for

distilled spirits, wine, and malt beverages. Upon written request, the

Chief, Alcohol and Tobacco Programs Division, Bureau of Alcohol,

Tobacco and Firearms, Washington, DC 20226, shall furnish information

as to the issuance, pursuant to section 105(e) of the Federal Alcohol

Administration Act (27 U.S.C. 205(e)) and Part 4, 5, or 7 of this

chapter, of certificates of label approval, or of exemption from label

approval, for distilled spirits, wine, or malt beverages. * * * The

person making the request may obtain reproductions or certified copies

of such certificates upon payment of the established fees prescribed by

31 CFR 1.7. * * *

* * * * *

(f) Information relating to the tax classification of a roll of

tobacco wrapped in reconstituted tobacco. Upon written request, the

Deputy Associate Director (Regulatory Enforcement Programs), Bureau of

Alcohol, Tobacco and Firearms, Washington, DC 20226, shall furnish

information as to a Bureau determination of the tax classification of a

roll of tobacco wrapped in reconstituted tobacco. * * *

(g) Comments received in response to a notice of proposed

rulemaking. * * * Comments may be inspected in the Disclosure Branch,

Bureau of Alcohol, Tobacco and Firearms, Washington, DC 20226. * * *

The provisions of 31 CFR 1.7, relating to fees, apply with respect to

requests made in accordance with this paragraph.

PART 71--STATEMENT OF PROCEDURAL RULES-- [REMOVED]

Par. 12. 27 CFR Part 71 is removed.

Signed: May 20, 1996.

John W. Magaw,

Director.

Approved: May 24, 1996.

Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).

[FR Doc. 96-14855 Filed 6-12-96; 8:45 am]

BILLING CODE 4810-31-U