Manufacturers Excise TaxesFirearms and Ammunition (95R-055P)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 53

[T.D. ATF-394]

RIN 1512-AB42

Manufacturers Excise Taxes--Firearms and Ammunition (95R-055P)

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

ACTION: Final rule (Treasury decision).

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SUMMARY: This final rule adopts without change temporary regulations

published in the Federal Register on July 16, 1996. The temporary rule

amended the regulations in 27 CFR part 53 that require exemption

certificates or vendee statements in support of certain tax-free sales

of firearms and ammunition. As amended by the temporary rule and this

final rule, the regulations provide that taxpayers may use a preprinted

document as an exemption certificate or vendee statement, or design

their own certificate and statement using specified information. The

regulatory amendments are part of the Administration's efforts to

reduce regulatory burdens and streamline requirements.

EFFECTIVE DATE: April 6, 1998.

FOR FURTHER INFORMATION CONTACT: Marsha Baker, Regulations Branch,

Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Ave., NW,

Washington, DC 20226; (202-927-8476).

SUPPLEMENTARY INFORMATION:

Background

Chapter 32 of the Internal Revenue Code of 1986 imposes an excise

tax on

[[Page 5728]]

the sale of firearms and ammunition by the manufacturer, producer, or

importer thereof. 26 U.S.C. 4181. However, section 4221 of the Code

sets forth certain purposes for which an article subject to tax under

Chapter 32 may be sold tax-free by the manufacturer, producer, or

importer.

Under the regulations appearing in 27 CFR part 53, persons who sell

firearms or ammunition tax-free are required to obtain certain

exemption certificates or vendee statements to support such sales.

Previous regulations included suggested forms for each type of

statement and certificate. However, the Bureau of Alcohol, Tobacco and

Firearms (ATF) has now made these certificates and statements available

as preprinted documents that may be ordered by the taxpayer through the

Bureau's Distribution Center and then reproduced as needed.

Temporary Rule and Notice of Proposed Rulemaking

On July 16, 1996, ATF published in the Federal Register a temporary

rule (T.D. ATF-380, 61 FR 37005) amending the regulations regarding

exemption certificates and statements related to the tax-free sale of

firearms and ammunition. The temporary rule provided that taxpayers had

the option of either using a preprinted exemption certificate and

statement available through the Bureau's Distribution Center or

designing their own certificates and statements that reflected the

information required by the regulations. Should taxpayers wish to

design and use their own certificates or statements, the regulations

explain what information is required on such documents.

On July 16, 1996, the Bureau also published a notice of proposed

rulemaking cross-referenced to the temporary regulations (Notice No.

831, 61 FR 37022). The notice sought public comment on the changes made

by the temporary rule. The comment period for Notice No. 831 closed on

October 15, 1996.

Comments

ATF received no comments in response to Notice No. 831.

Final Rule

ATF is adopting without change the amendments published in the

temporary rule, T.D. ATF-380. The amendments reduce regulatory burdens

by making preprinted forms available to taxpayers, while still

providing taxpayers the flexibility of creating their own certificates

and statements to support tax-free sales.

Executive Order 12866

It has been determined that this final rule is not a significant

regulatory action as defined in E.O. 12866. Therefore, a regulatory

assessment is not required.

Regulatory Flexibility Act

Pursuant to section 7805(f) of the Internal Revenue Code, the

notice of proposed rulemaking and the temporary rule preceding this

regulation were submitted to the Chief Counsel for Advocacy of the

Small Business Administration (SBA) for comment on any impact on small

business. The SBA did not submit any comments.

Paperwork Reduction Act

The provisions of the Paperwork Reduction Act of 1995, Pub. L. 104-

13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR part

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

collect information is imposed.

Disclosure

Copies of the temporary rule, the notice of proposed rulemaking,

and this final rule will be available for public inspection during

normal business hours at: ATF Public Reading Room, Room 6480, 650

Massachusetts Avenue, NW, Washington, DC 20226.

Drafting Information

The authors of this document are Mary Lou Blake and Marsha D.

Baker, Regulations Branch, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 53

Administrative practice and procedure, Arms and munitions,

Authority delegations, Exports, Imports, Penalties, Reporting and

recordkeeping requirements.

PART 53--MANUFACTURERS EXCISE TAXES--FIREARMS AND AMMUNITION

Accordingly, the temporary rule (TD ATF-380) amending 27 CFR part

53 which was published at 61 FR 37005 on July 16, 1996, is adopted as a

final rule without change.

Signed: December 22, 1997.

John Magaw,

Director.

Approved: January 13, 1998.

John P. Simpson,

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

[FR Doc. 98-2681 Filed 2-3-98; 8:45 am]

BILLING CODE 4810-31-U