Implementation of Public Law 105-33, Section 9302, Relating to Tobacco Importation Restrictions, Markings, Minimum Manufacturing Requirements, and Penalty Provisions (98R-369P)

SUMMARY: This temporary rule implements several provisions of the

Balanced Budget Act of 1997. Section 9302 of the new law: places

restrictions on the importation of previously exported tobacco

products, requires markings on tobacco products or cigarette papers and

tubes removed or transferred without payment of the federal excise tax,

provides penalties for selling, relanding, or receiving, within the

jurisdiction of the United States, tobacco products or cigarette papers

and tubes which have been labeled and shipped for exportation and were

removed after the effective date, and authorizes the Secretary to

prescribe minimum capacity or activity requirements as a criteria for

issuance of a manufacturer's permit.

The temporary rule implements these changes in law by providing new

and amended regulations in parts 200, 270, 275 and 290 of title 27 of

the Code of Federal Regulations (CFR). Additionally, the Bureau of

Alcohol, Tobacco and Firearms (ATF) has made several other clarifying

changes to the tobacco regulations. This temporary rule will remain in

effect until superseded by final regulations.

In the Proposed Rules section of this Federal Register, ATF is also

issuing a notice of proposed rulemaking that invites comments on this

temporary rule for a 60-day period following the publication of this

temporary rule.

DATES: These temporary regulations are effective January 1, 2000.

FOR FURTHER INFORMATION CONTACT: Ms. Teri Byers or Mr. Daniel Hiland,

Regulations Division, 650 Massachusetts Avenue, NW, Washington, DC

20226; Telephone (202) 927-8210, or alcohol/

[email protected].

SUPPLEMENTARY INFORMATION:

Background

This temporary rule implements several provisions in section 9302

of the Balanced Budget Act of 1997 (Act), Pub. L. 105-33, 111 Stat.

672. Section 9302 amends the Internal Revenue Code of 1986 (IRC) at

sections 5704(b), 5712, 5754 and 5761(c). These new provisions relate

to tobacco products, cigarette papers and tubes importation

restrictions, markings, minimum manufacturing requirements and penalty

provisions concerning tobacco products, and cigarette papers and tubes.

Congress amended the IRC so that the Secretary of the Treasury can

more effectively enforce the collection of Federal excise taxes on such

products. These provisions protect the Federal excise tax revenues

derived from tobacco products, and cigarette papers and tubes. The

Joint Committee on Taxation's ``General Explanation of Tax Legislation

Enacted in 1997'' stated that the purpose of the amendments was to

impose ``expanded compliance measures designed to prevent the diversion

of non-taxpaid tobacco products nominally destined for export to use

within the United States.'' As the delegate of the Secretary of the

Treasury (See Treasury Department Order 120-01 (formerly 221), dated

June 6, 1972) ATF is implementing these new provisions by regulation.

Marks, Labels and Notices

Current Law

The Federal excise tax on tobacco products, and cigarette papers

and tubes is due on their removal from bonded premises. See 26 U.S.C.

5703. There are several exemptions from the Federal excise tax, under

section 5704. Section 5704(b) allows a manufacturer of tobacco

products, cigarette papers or tubes, or an export warehouse proprietor

to transfer tobacco products and cigarette papers and tubes, without

payment of tax to the bonded premises of another manufacturer or export

warehouse proprietor. As defined in section 5702, a manufacturer of

tobacco products means any person who manufactures cigars, cigarettes,

smokeless tobacco, or pipe tobacco. This term does not include a person

who produces such products solely for the person's own consumption or

use, or a proprietor of a customs bonded warehouse. A manufacturer of

cigarette papers and tubes means a person who makes up cigarette paper

and tubes, except for personal consumption. 26 U.S.C. 5702(h). An

export warehouse proprietor means one who operates an export warehouse,

which is a bonded internal revenue warehouse for the storage of tobacco

products, and cigarette papers and tubes. See 26 U.S.C. 5702(i), (j).

Section 5704(b) also allows a manufacturer of tobacco products, and

cigarette papers and tubes, or an export warehouse proprietor to remove

tobacco products, and cigarette papers and tubes for shipment to a

foreign country, Puerto Rico, the Virgin Islands or a possession of the

United States, or for consumption beyond the jurisdiction of the

internal revenue laws of the United States. In addition, manufacturers

may remove such articles for use of the United States without payment

of the excise tax. Current ATF regulations which implement these

provisions are located in 27 CFR part 290.

Furthermore, under 26 U.S.C. 5723(b), ATF is authorized to require

certain marks, labels and notices on every package of tobacco products

or cigarette papers. Based on this authority, for those products that

are intended for export, 27 CFR 290.185 requires that every package of

tobacco product that is deemed for export be marked with the words

``Tax-exempt. For use outside U.S.'' or the words, ``U.S. Tax-exempt.

For use outside U.S.'' or a stamp, sticker or notice required by a

foreign country or a possession of the United States, which identifies

such country or possession. In addition, where taxpaid tobacco products

are to be exported and a drawback of the tax paid to the manufacturer,

27 CFR 290.222 requires these packages to be marked with the words,

``For Export with Drawback of Tax''. These regulations serve two

purposes. They enable us to clearly and easily identify packages of

tobacco product that have been removed tax-free under section 5704(b)

or subject to drawback under section 5706. In addition, the export

marking requirement helps us to determine which tobacco products are

intended for export. The regulations are a valuable enforcement

mechanism that helps to prevent jeopardy of the revenue, because we can

easily determine which products have been exempt from taxation and

intended for export. When we identify a package of tobacco product in

the U.S. market with tax-exempt export markings, we become concerned as

to whether it has been Federally taxpaid.

New Law

Congress specifically requires, under section 9302(h)(1)(A) of the

Act, that tobacco products, and cigarette papers and tubes may not be

transferred or removed under 26 U.S.C. 5704(b) unless they bear the

proper marks, labels and

[[Page 71919]]

notices as required by the Secretary of the Treasury. Thus, the

Secretary of the Treasury is authorized to prescribe the type of marks,

labels and notices required on products that are exempt from taxation

under 26 U.S.C. 5704(b). Congress wanted to specifically authorize ATF

to determine, for products exempt from taxation under section 5704(b),

required marks, labels and notices to ensure protection of the Federal

excise tax revenue. Congress wanted to ensure that non-taxpaid products

intended for exportation bear the proper markings. Congress also wanted

to require that taxpaid products that are ultimately sold on the

domestic market must not bear exportation markings. Allowing products

with export markings on the domestic U.S. market would hinder ATF

enforcement of lawfully due taxes, and cause confusion as to whether

the product has been taxpaid.

Thus, based on this authority, ATF has amended three sections of

the regulations. We are now requiring that tobacco products, and

cigarette papers and tubes bear the required marks, labels and notices

in order to qualify for transfer or removal of the product without

payment of tax. Accordingly, we have amended 27 CFR 270.233, 290.61 and

290.181. Thus, under amended Sec. 270.233, tobacco products may not be

transferred in bond unless they bear all required marks, labels and

notices. In addition, under amended Sec. 290.61, tobacco products, and

cigarette papers and tubes may not be removed for exportation without

payment of tax unless they bear all required marks, labels and notices.

We have also amended Sec. 290.181 to require that all tobacco products,

cigarette papers and tubes must, before removal or transfer, bear the

required marks, labels, or notices.

Finally, we have amended Sec. 290.181 to clarify that the

``package'', upon which the marking, labeling and notice requirements

are to appear, does not include any cellophane wrapping material that

may enclose a package. A package, thus, is only intended to include the

actual material that holds and encloses the tobacco products, and

cigarette papers or tubes. This amended definition clarifies placement

of the marking, labeling and notice requirements. In keeping with

Congressional intent to prevent diversion of tobacco products, we

wanted to ensure that markings, labels and notices on products destined

for export are clear and not easily destroyed.

Minimum Manufacturing Activity Requirements

Current Law

Section 5712 currently requires that every person, before

commencing business as a manufacturer of tobacco products or as an

export warehouse proprietor, shall apply for and obtain a permit to

engage in such business. See also 26 U.S.C. 5713. (Effective January 1,

2000 importers will also be required to obtain a permit.) Under current

law, the application may be rejected and the permit denied if, after

notice and opportunity for hearing, we find that: (1) The proposed

premises are not adequate to protect the revenue, (2) the applicant's

business experience, financial standing or trade connections

demonstrates that the applicant is not likely to comply with the law or

(3) the applicant failed to disclose required material information or

made a material false statement on the application. These factors

enable ATF to ensure that those engaged in the business of

manufacturing tobacco products will adequately protect the revenue and

comply with the law and regulations.

New Law

In section 9302 of the Act, Congress amended 26 U.S.C. 5712 by

adding an additional factor for rejecting and denying an application

for a permit. The new law provides that the an application may also be

denied if ``the activity proposed to be carried out at such premises

does not meet such minimum capacity or activity requirements as the

Secretary may prescribe.'' Based on this new language, ATF is

authorized to establish minimum capacity or activity requirements, and

will deny a permit application based on a failure to meet such minimum

capacity or activity requirements. Congress enacted this provision to

ensure that those who apply for a permit actually intend to engage in

the bona fide business of manufacturing tobacco products in a way that

will adequately protect the revenue and comply with the law and

regulations.

In promulgating regulations that establish minimum capacity or

activity requirements, ATF has considered several issues. ATF does not

want to establish criteria that would effectively exclude small tobacco

products manufacturers from obtaining a permit. In addition, ATF wants

to establish criteria that will ensure that only those actually engaged

in the business of manufacturing tobacco products are able to obtain a

permit. Thus, ATF wants to establish criteria that would effectively

exclude any persons who are not legitimate manufacturers and whose

primary interest in obtaining a manufacturer's permit is to obtain the

tax deferral benefits that a permit might facilitate.

Small Manufacturers

Section 5712 requires that prior to engaging in the business of

manufacturing tobacco products, a person must obtain a permit from ATF.

We believe that any manufacturer who proposes to engage in the business

of manufacturing of tobacco products, regardless of size, should be

eligible to receive a permit, so long as they meet the definition of a

manufacturer as defined in section 5702(d) and have fulfilled the other

conditions in the law and regulations. In the past, ATF has issued

permits to some small manufacturers of tobacco products, such as those

who manufacture hand-rolled cigars. Thus, we did not want to establish

minimum capacity or activity criteria that would exclude small tobacco

products manufacturers.

Downstreaming of Taxes

As stated, ATF needs to ensure that only those persons who fit

within the definition of manufacturer at section 5702(d) are eligible

to receive a permit. We would like to ensure that permits are not

issued to persons who intend to use the permit to delay tax payment. In

recent years, ATF has received inquiries from those who would like to

obtain a permit and establish bonded premises for the primary purpose

of receiving tobacco products in bond and delaying payment of Federal

excise taxes.

The Federal excise tax on tobacco products attaches to the products

as soon as they are produced. The manufacturer is liable for the tax on

tobacco products held in bond. The manufacturer actually pays the tax

when the tobacco product is removed from bond. See 26 U.S.C. 5703.

Generally, tobacco products are distributed under a three-tier

distribution system. Once the manufacturer pays Federal excise tax

after removal from bonded premises, the products are transferred to a

wholesaler, which is the second level in the distribution system. The

retailer is the third level in this tier system, and is a customer of

the wholesaler.

As discussed previously, section 5704 provides that tobacco

products may be transferred from a manufacturer or export warehouse

proprietor to another manufacturer or export warehouse proprietor

without payment of tax. Because of this exemption from taxation, a

business could attempt to set up one or more wholesale warehouses

[[Page 71920]]

with some de minimis production capability, and obtain a manufacturer's

permit for each wholesale warehouse. Using the in bond transfer

provision provided by section 5704, each warehouse would then be

eligible to receive tobacco products in bond at each wholesale

warehouse, without payment of the excise tax. The taxes on the product

would not be due until the product was distributed from the wholesale

level to the retail level. This approach is referred to as

``downstreaming of taxes,'' since it moves the collection point for the

excise tax from the production level to the wholesale level. This is

potentially beneficial for manufacturers, since they can effectively

delay taxpayment until the product is removed from essentially the

wholesale level. At the same time, it has an adverse effect on Federal

tax receipts, since it delays payment of the Federal excise tax.

We would like to prevent the downstreaming of taxes. It undermines

the effect and purpose of obtaining a permit to engage in the business

of manufacturing tobacco products. It also contravenes the safeguards

in obtaining a permit: to protect and collect the Federal excise tax

revenue. ATF is also concerned with the potential number of new

taxpayers (i.e., wholesalers qualifying as manufacturers) and the

proliferation of tax payment points, if this approach becomes widely

used. We have found that the collection of excise taxes is best

achieved at the highest level within the distribution chain--the

manufacturer level. Collected at the manufacturer level, we have fewer

taxpayers to monitor, and thus have more efficient tax collections and

fewer administrative costs. By ensuring that tax payment is made at the

true manufacturing level, we can decrease the likelihood that taxable

product will evade proper tax payment.

Recognizing these concerns, ATF wants to ensure that the new

minimum manufacturing criteria would prevent issuance of a permit to

businesses that want to receive tobacco products in bond and delay

Federal excise tax payments. In summary, we have amended the

regulations whereby we will continue to issue permits to small

manufacturers of tobacco products, despite limited production capacity,

and to deny permits to persons who seek a permit for the principal

purposes of receiving in-bond untaxed cigarettes.

Minimum Manufacturing Activity Criteria for Tobacco Products

Manufacturers

Accordingly, ATF has amended the regulations at 27 CFR 270.61, by

requiring that a permit will only be granted to those persons whose

principal business activity under such permit will be the original

manufacture of tobacco products. A permit will not be granted to any

person whose proposed principal activity under such permit will be to

receive or transfer non-taxpaid tobacco products in-bond. Furthermore,

to qualify for a permit, the amount of tobacco products manufactured

under a permit must exceed the amount transferred or received in-bond

under such permit. For example, a person who only manufactures 1,000

cigarettes per month, may receive a maximum of 999 cigarettes in bond

during the month under that permit. Likewise, a person who manufactures

10,000,000 cigarettes a month could receive up to 9,999,999 cigarettes

in bond during the month under that permit. As stated, the quantity of

tobacco products received or transferred in bond under a particular

permit may not exceed the quantity of tobacco products manufactured

under that permit for any given month.

Again, this criteria is intended to ensure that only those persons,

whose primary activity is the manufacture of tobacco products, receive

a manufacturer's permit. We believe that these changes to the

regulations effectively accommodate small producers, while protecting

the timely assessment and collection of the Federal excise tax revenue.

We have also amended regulations in 27 CFR 200.49b to include this new

activity criterion as a basis for rejecting an application for a

permit. We have not amended 27 CFR 200.46, regarding revocation or

suspension of tobacco permits, because we already require compliance

with regulations issued under the IRC.

Importers and Export Warehouse Proprietors

Effective January 1, 2000, the IRC also requires that importers

obtain a permit prior to engaging in the business. See 26 U.S.C. 5712.

We have considered the issue very carefully, and have decided that we

will not impose minimum capacity or activity criteria for importers at

this time. In addition, we will not impose this type of requirement on

export warehouse proprietors. We do not think that either of these

permittees will, or can engage in possible similar misuse of their

permits. However, ATF will consider imposing minimum manufacturing or

activity criteria on importers and export warehouse proprietors if the

need should arise.

Import Restrictions on Previously Exported Tobacco Products,

Cigarette Papers and Tubes

Section 9302 of the Act also added new section 26 U.S.C. 5754,

entitled ``Restriction on importation of previously exported tobacco

products.'' This new section places severe limitations on the

conditions under which previously exported tobacco products, and

cigarette papers and tubes may be imported or brought back into the

United States. This new section states that such products may only be

imported or brought into the United States as provided in section

5704(d).

Section 5704(d) allows previously exported tobacco products and

cigarette papers and tubes to be released from Customs custody, without

payment of tax, for transfer to a manufacturer of tobacco products or

cigarette papers and tubes, or to the proprietor of an export

warehouse. We note that section 5704(d) allows previously exported

tobacco products to be lawfully transferred to any manufacturer of

tobacco products or cigarette papers and tubes, or to any export

warehouse proprietor. The law does not mandate that the previously

exported products return to its original manufacturer or export

warehouse proprietor.

Thus, under section 5754, the only condition under which previously

exported tobacco products and cigarette papers and tubes may be

imported or brought into the United States is by release from Customs

custody to a manufacturer or an export warehouse proprietor as an in-

bond transfer. New section 5754 precludes the importation and tax

payment of such products by an importer. The law is very clear and

leaves no discretion to ATF in this regard. Section 5754 clearly states

that such products may only be imported or brought into the United

States by the method provided in section 5704(d); that is, a transfer,

without payment of tax, to a manufacturer or export warehouse.

Based on the restrictive language of section 5754, ATF has amended

several sections of the regulations in 27 CFR Part 275. Specifically,

new or amended regulations now appear at 27 CFR 275.1, 275.81 and

275.82.

Under amended 27 CFR 275.1, the importation of tobacco products,

and cigarette papers and tubes is generally discussed. In addition, 27

CFR 275.81 distinguishes between tobacco products and cigarette papers

and tubes that are imported, and those that have been previously

exported from the United States and returned to the US. Furthermore, 27

CFR 275.82 discusses

[[Page 71921]]

the new restrictions on the return of exported products.

Penalty and Forfeiture Provisions

In addition to the above restrictions on importations, section 9302

of the Act also imposes a new civil penalty on persons, other than

manufacturers or export warehouse proprietors, who sell, reland or

receive tobacco products or cigarette papers or tubes that have been

labeled or shipped for exportation under Chapter 52 of the IRC. The

civil penalty is the greater of $1,000 or five times the amount of tax

imposed on the product. Thus, a larger penalty is imposed where the

amount of the Federal excise tax on the product is greater than $200.

In addition to the civil penalty, criminal penalties and forfeiture of

the product and any vessel, vehicle or aircraft involved in relanding

or removing such product may be imposed. See 26 U.S.C. 5761(c).

Exemptions

The civil penalties do not apply to a manufacturer or export

warehouse proprietor qualified under Chapter 52 of the IRC. See 26

U.S.C. 5704(b), 5704(d).

Application of Effective Dates

Section 9302(i) of the Act provides that the amendments to the IRC

apply to ``articles removed'' after December 31, 1999. The Act amends

the term ``removed'' to mean: ``the removal of tobacco products or

cigarette papers or tubes from the factory or from internal revenue

bond under section 5704, as the Secretary shall by regulation

prescribe, or release from customs custody, and shall also include the

smuggling or other unlawful importation of such article into the United

States.''

The new civil and forfeiture penalty in section 5761(c) applies

only to tobacco products, and cigarette papers and tubes bearing export

markings that have been ``removed'' on or after January 1, 2000.

Accordingly, section 5761(c) applies to these products that are marked

for export and removed from a manufacturer or export warehouse

proprietor, released from Customs custody, or smuggled into the United

States on or after January 1, 2000.

Articles that are removed on or before December 31, 1999 are not

subject to the new penalty in section 5761(c). Tobacco products in

packages bearing export marks that were lawfully removed from Customs

custody and entered into the United States prior to January 1, 2000 are

lawful products and not subject to the civil penalty under section

5761(c), or other criminal provisions of Chapter 52 of the IRC. These

new penalty provisions have been added to 27 CFR 275.83.

ATF has carefully considered ways to enforce section 5761(c), since

the domestic market will contain tobacco products that have been

lawfully removed on or before December 31, 1999, and products marked

for export that have been unlawfully introduced into the domestic

market after December 31, 1999 and subject to the civil penalty. To

differentiate between the products that have been lawfully removed and

unlawfully removed, we considered whether or not to change the export

marking requirements under 27 CFR 290.185 for products manufactured

after December 31, 1999. We have initially rejected this possibility,

since it would impose major burdens on tobacco manufacturers. ATF has

decided that voluntary commercial marks placed on packages by the

tobacco industry will enable us to distinguish between these products.

However, we will, under section 5704(b) authority, change the export

marking on products manufactured after December 31, 1999 to

differentiate between products removed if future investigations

disclose the need to do so.

Repackaging

As noted, Congress enacted a new section 5754 in the IRC. Under

this section, tobacco products and cigarette papers and tubes

previously exported from the United States may only be imported or

brought into the United States as provided in section 5704(d). Section

5704(d) provides that tobacco products and cigarette papers and tubes

exported and returned may be released from customs custody, without

payment of that part of the duty attributable to the internal revenue

tax, for delivery to a manufacturer of tobacco products or cigarette

papers and tubes or to an export warehouse proprietor. Except for a

qualified manufacturer of tobacco products or cigarette papers and

tubes and an export warehouse proprietor, section 5761(c) imposes

penalties for the selling, relanding, and receiving of tobacco products

that are labeled or shipped for export. In effect, section 5761(c)

prohibits the sale of relanded tobacco product bearing export markings.

Although manufacturers and export warehouse proprietors are

authorized to receive relanded tobacco products or cigarette papers or

tubes from customs custody without payment of the Federal excise tax,

there are limitations on what manufacturers and export warehouse

proprietors may do with such product. As discussed below, the products

may be destroyed, re-exported, or in the case of a manufacturer, the

product may be repackaged and removed for sale in the domestic market.

Export Warehouses

Section 5702 defines ``export warehouse'' to mean ``a bonded

internal revenue warehouse for the storage of tobacco products and

cigarette papers and tubes, upon which the internal revenue tax has not

been paid, for subsequent shipment to a foreign country, Puerto Rico,

the Virgin Islands, or a possession of the United States, or for

consumption beyond the jurisdiction of the internal revenue laws of the

United States.'' An export warehouse proprietor is one who owns an

export warehouse. Export warehouse proprietors are authorized to store

non-taxpaid tobacco products, and cigarette papers and tubes for

subsequent exportation. Under the IRC, an export warehouse proprietor

is not authorized to pay excise tax on tobacco products, including

relanded tobacco products for distribution into the domestic U.S.

market. Export warehouses are specifically established under the law to

facilitate the exportation of tobacco products without payment of the

excise tax. Thus, by definition, an export warehouse can only receive

tobacco products in bond and export them or return them to a

manufacturer. Because there is no authority for the export warehouse

proprietor to pay the excise tax and distribute tobacco products onto

the domestic U.S. market, an export warehouse proprietor may lawfully

receive relanded tobacco products, transfer relanded tobacco products

to a qualified manufacturer, or re-export the relanded tobacco

products. Export warehouse proprietors may also destroy these relanded

tobacco products.

Manufacturers

Manufacturers are authorized under the IRC to pay excise tax on and

distribute tobacco products into the domestic market. See 26 U.S.C.

5703. However, the IRC also requires that before removal from a

manufacturer's factory, tobacco products must be put up in packages and

bear the marks, labels, and notices required by the Secretary.

As stated above, the Secretary has the general authority to

prescribe packaging and marking requirements for tobacco products. See

26 U.S.C. 5723(a) and (b). Under this authority, ATF has prescribed

regulations under 27 CFR 290.185 which require that products removed

for exportation exempt from taxation must bear export markings. Again,

such markings include the words, ``Tax-exempt. For use outside of

[[Page 71922]]

U.S.'' or ``U.S. Tax-exempt. For use outside U.S.'' These export

markings signify that the product is not subject to Federal taxes and

that it is not intended for distribution within the United States. We

rely on these markings to identify these products as a tax-exempt

export for enforcement purposes. In addition, ATF has prescribed

regulations under 27 CFR 290.222 which require that tobacco products

and cigarette papers and tubes on which tax has been paid and a

drawback claim has been made must have a label affixed reading ``For

Export With Drawback of Tax.''

However, previously exported products that are relanded in the

United States also bear the export markings required under Sec. 290.185

and Sec. 290.222 and may be intended for distribution in the domestic

market. Because we cannot tell if a particular product on the market

has been lawfully taxpaid and removed from Customs custody, or if it

was smuggled into the U.S., the efficacy of the export marking

requirements is severely reduced if these products are allowed in the

domestic market. ATF has concluded that since relanded tobacco products

are marked in accordance with the tobacco export regulations at 27 CFR

290.185 and bear a statement that says ``Tax-exempt. For use outside of

U.S.'' or ``U.S. Tax-exempt. For use outside U.S.'' or in accordance

with 290.222 and bear a statement that says ``For Export With Drawback

of Tax,'' they are not properly marked for distribution on the domestic

U.S. market. Further, if products with export markings were allowed on

the domestic market, this practice would hinder ATF enforcement of the

IRC and pose a jeopardy of the revenue. Our goal is to protect the

revenue, and to determine whether the Federal excise tax on a relanded

product has been paid. ATF has considered various options for removing

these export markings and bringing relanded products into compliance

with the domestic marking and labeling requirements. We have considered

allowing such products to be over-stamped, allowing the obliteration of

the tax-exempt marking, or allowing stickers to be placed over the

markings. However these options of over-stamping, obliteration or

stickers would negate the value of these markings as a tax enforcement

tool. Over-stamping, obliteration, or placing stickers over the tax-

exempt notice would not necessarily mean that the Federal excise tax

had been paid on the relanded product. Any person could obtain product

that had not been Federally taxpaid, and place stickers over the ``tax

exempt'' notice on packages and distribute them in the domestic market.

After careful consideration of the issue, we have concluded that a

manufacturer who distributes relanded tobacco products onto the

domestic market, must remove the product from its original packages

(bearing export markings) and repackage them into new packages with the

proper mark and notice requirements for domestic U.S. distribution as

prescribed in 27 CFR part 270. ATF has determined that in order to

protect the Federal excise tax revenue, it is essential to require the

repackaging of these reimported products before they are introduced in

domestic commerce.

Thus, under 26 U.S.C. 5761(c), products labeled for export may not

be sold on the domestic U.S. market. However, manufacturers are

eligible to receive relanded tobacco products, and cigarette papers and

tubes and sell them on the domestic market if they are completely

repackaged under the laws and regulations for products not intended for

exportation. Accordingly, amended 27 CFR 275.82(b) prescribes

requirements for repackaging under these circumstances. Also,

regulations have been added at 27 CFR 270.213 which notify

manufacturers that tobacco products marked for export are not eligible

for distribution on the domestic market, and the need to repackage such

products.

Finally, similar to an export warehouse proprietor, a manufacturer

may also transfer the tobacco products to another manufacturer or

export warehouse proprietor, re-export the relanded tobacco products,

or destroy these relanded tobacco products.

Miscellaneous Changes

Form Numbers

In addition to the changes to the regulations necessitated by

Public Law 105-33, ATF is making several miscellaneous administrative

changes that update the references to ATF Form numbers within the

regulations. The regulations at 27 CFR 290.61a, 290.142, 290.198

through 290.208, 290.210, 290.213, and 290.256 through 290.267 are also

amended to change all references from the obsolete form number ATF F

2149/2150, to the new form number ATF F 5200.14. The regulations in 27

CFR 290.152 through 290.154 are also amended to change all references

from the obsolete form number: ATF F 2635, to the new form number: ATF

F 5620.8. The regulations in 27 CFR 290.62 are amended to delete

obsolete references to a Customs form and regulatory citation.

Record Retention of ATF Forms

Minor changes are being made in the regulations to reflect the

correct number of years that ATF forms numbers 5700.14 and 5620.8 must

be retained. The regulations are amended to change the records

retention period from 2 years to 3 years.

Manufacturer's Record

The record of a manufacturer of tobacco products at 27 CFR 270.183

is amended to include the term ``roll-your-own tobacco'' and to include

a record of transfers to, and receipts from foreign trade zones.

Export Warehouse Records

The records required to be maintained by an export warehouse

proprietor at 27 CFR 290.142 have been amended to include several new

items of information. Proprietors will now be required to indicate the

manufacturer and brand name of products: received, removed,

transferred, destroyed, lost, or returned to manufacturers or customs

bonded warehouses. In addition, their records must also include the

number of containers and unit type (e.g., cartons, cases).

Definitions

To clarify the regulations, several definitions are being added to

the ``Meaning of terms'' sections in 27 CFR 275.11 and 290.11. Section

275.11 is amended by adding definitions for the terms ``export

warehouse,'' ``export warehouse proprietor,'' ``manufacturer of tobacco

products,'' ``manufacturer of cigarette papers and tubes,'' and

``relanding,'' Section 290.11 is amended by adding a definition for

``zone restricted status.''

Regulatory Flexibility Act

Because no notice of proposed rulemaking is required, the

provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do

not apply. Moreover, any revenue effects of this rulemaking on small

businesses flow directly from the underlying statute. Likewise, any

secondary or incidental effects, and any reporting, recordkeeping, or

other compliance burdens flow directly from the statute. Pursuant to 26

U.S.C. 7805(f), this temporary regulation will be submitted to the

Chief Counsel for Advocacy of the Small Business Administration for

comment on its impact on small business.

[[Page 71923]]

Executive Order 12866

It has been determined that this temporary rule is not a

significant regulatory action as defined by Executive Order 12866

because any economic effects flow directly from the underlying statute

and not from this temporary rule. Therefore, a regulatory assessment is

not required.

Paperwork Reduction Act

This regulation is being issued without prior notice and public

procedure pursuant to the Administrative Procedure Act (5 U.S.C. 553).

For this reason, the collection of information contained in this

regulation has been reviewed under the requirements of the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507(j)), and pending receipt and

evaluation of public comments, approved by the Office of Management and

Budget (OMB) under control numbers 1512-0367 and 1512-0358. Any agency

may not conduct or sponsor, and a person is not required to respond to,

a collection of information unless it displays a valid control number

assigned by OMB.

The collection of information in this regulation is found in 27 CFR

270.183 and 290.142. The collection of this information is required to

verify that all tobacco products can be accounted for, thus ensuring

that the tax revenue is protected. Without these recordkeeping

requirements, no recording of the data elements pertaining to these

operations would be prescribed.

For further information concerning this collection of information,

and where to submit comments on the collection of information, refer to

the preamble of the cross-referenced notice of proposed rulemaking

published in the proposed rules section of this Federal Register.

Administrative Procedure Act

Because this document merely implements sections of the law which

were enacted on August 5, 1997, and because immediate guidance is

necessary to implement the provisions of the law, it is found to be

contrary to the public interest and impracticable to issue this

Treasury decision with notice and public procedure under 5 U.S.C.

553(b), or subject to the effective date limitation in section 553(d).

Drafting Information

The principal authors of this document are Ms. Teri Byers and Mr.

Daniel Hiland, of the Regulations Division, Bureau of Alcohol, Tobacco

and Firearms. However, other personnel within ATF and the Treasury

Department also participated in developing this document.

List of Subjects

27 CFR Part 200

Administrative practice and procedure, Authority delegations.

27 CFR Part 270

Administrative practice and procedure, Authority delegations,

Cigarette papers and tubes, Claims, Electronic fund transfer, Excise

taxes, Labeling, Packaging and containers, Penalties, Reporting

requirements, Seizures and forfeitures, Surety bonds, Tobacco products.

27 CFR Part 275

Administrative practice and procedure, Authority delegations,

Cigarette papers and tubes, Claims, Customs duties and inspection,

Electronic fund transfer, Excise taxes, Imports, Labeling, Packaging

and containers, Penalties, Reporting requirements, Seizures and

forfeitures, Surety bonds, Tobacco products, U.S. possessions,

Warehouses.

27 CFR Part 290

Administrative practice and procedure, Aircraft, Authority

delegations, Cigarette papers and tubes, Claims, Customs duties and

inspection, Excise taxes, Exports, Foreign trade zones, Labeling,

Packaging and containers, Penalties, Surety bonds, Tobacco products,

Vessels, Warehouses.

Authority and Issuance

Accordingly, title 27, Code of Federal Regulations is amended as

follows:

PART 200--RULES OF PRACTICE IN PERMIT PROCEEDINGS

Paragraph 1. The authority citation for part 200 continues to read

as follows:

Authority: 26 U.S.C. 7805, 27 U.S.C. 204.

Par 2. Section 200.49b is amended by redesignating paragraph (b) as

paragraph (c) and by adding a new paragraph (b) to read as follows:

Sec. 200.49b Applications for tobacco permits.

* * * * *

(b) The applicant for a permit does not meet the minimum

manufacturing and activity requirements in 27 CFR 270.61; or

* * * * *

PART 270--MANUFACTURE OF TOBACCO PRODUCTS

Par 3. The authority citation for part 270 continues to read as

follows:

Authority: 26 U.S.C. 5142, 5143, 5146, 5701, 5703-5705, 5711-

5713, 5721-5723, 5731, 5741, 5751, 5753, 5761-5763, 6061, 6065,

6109, 6151, 6301, 6302, 6311, 6313, 6402, 6404, 6423, 6676, 6806,

7011, 7212, 7325, 7342, 7502, 7503, 7606, 7805, 31 U.S.C. 9301,

9303, 9304, 9306.

Par. 4. Section 270.61 is revised to read as follows:

Sec. 270.61 Qualification--General

(a) Who must qualify. Every person who produces tobacco products

except for his or her own personal consumption or use, shall qualify as

a manufacturer of tobacco products in accordance with the provisions of

this part.

(b) Minimum manufacturing and activity requirements. A permit to

manufacture tobacco products will only be granted to those persons

whose principal business activity under such permit will be the

original manufacture of tobacco products. A permit will not be granted

to any person whose principal activity under such permit will be to

receive or transfer tobacco products in bond. As a minimum activity

requirement, in order to qualify for a permit, the quantity of tobacco

products manufactured under the permit must exceed the quantity to be

transferred or received in bond under the permit. For the purposes of

this section, repackaging or relabeling activities alone do not qualify

as a manufacturing activity.

Par. 5. Section 270.183 is revised to read as follows:

Sec. 270.183 Record of tobacco products.

The record of a manufacturer of tobacco products shall show the

date and total quantities of all tobacco products, by kind (small

cigars-large cigars; small cigarettes-large cigarettes; chewing

tobacco-snuff; pipe tobacco; roll-your-own tobacco):

(a) Manufactured;

(b) Received in bond by--

(1) Transfer from other factories,

(2) Release from customs custody,

(3) Transfer from export warehouses, and

(4) Transfer from foreign trade zone;

(c) Received by return to bond;

(d) Disclosed as an overage by inventory;

(e) Removed subject to tax (itemize large cigars by sale price in

accordance with Sec. 270.22);

(f) Removed, in bond, for--

(1) Export,

(2) Transfer to export warehouses,

(3) Transfer to other factories,

(4) Transfer to a foreign trade zone

(5) Use of the United States, and

(6) Experimental purposes off factory premises;

[[Page 71924]]

(g) Otherwise disposed of, without determination of tax, by--

(1) Consumption by employees on factory premises,

(2) Consumption by employees off factory premises, together with

the number of employees to whom furnished,

(3) Use for experimental purposes on factory premises,

(4) Loss,

(5) Destruction, and

(6) Reduction to materials;

(h) Disclosed as a shortage by inventory; and

(i) On which the tax has been determined and which are--

(1) Received, and

(2) Disposed of.

(Approved by the Office of Management and Budget under control

number 1512-0358)

Par. 6. Section 270.213 is added to read as follows:

Sec. 270.213 Tobacco products labeled for export.

Tobacco products labeled for export are ineligible for removal from

the factory and distribution into the domestic U.S. market. Such

products may only be sold, transferred or delivered onto the domestic

U.S. market by a manufacturer of tobacco products after repackaging of

the product. For the purposes of this section, ``repackaging'' shall

mean the removal of the tobacco product from its original package

bearing the export marks and placement of the product in a new package.

The new packages, marks and notices must conform to the requirements of

this subpart.

Par. 7. Section 270.233 is amended by adding a new sentence to the

end of the section to read as follows:

Sec. 270.233 Transfer in bond.

* * * Tobacco products are not eligible for transfer in bond to a

manufacturer of tobacco products or to an export warehouse unless they

bear all required marks, labels, or notices.

PART 275--IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND

TUBES

Par. 8. The authority citation for part 275 is revised to read as

follows:

Authority: 26 U.S.C. 5701, 5703, 5704, 5705, 5708, 5722, 5723,

5741, 5754, 5761, 5762, 5763, 6301, 6302, 6313, 6404, 7101, 7212,

7342, 7606, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

Par. 9. Section 275.1 is revised to read as follows:

Sec. 275.1 Importation of tobacco products and cigarette papers and

tubes.

This part contains regulations relating to tobacco products and

cigarette papers and tubes imported into the United States from a

foreign country or brought into the United States from Puerto Rico, the

Virgin Islands, or a possession of the United States; the removal of

tobacco products from a customs bonded manufacturing warehouse, class

6; restrictions on the importation of previously exported tobacco

products and cigarette papers and tubes; and the release of tobacco

products and cigarette papers and tubes from customs custody, without

payment of internal revenue tax or customs duty attributable to the

internal revenue tax.

Par. 10. Section 275.11 is amended by adding in alphabetical order,

definitions for the terms ``Export warehouse,'' ``Export warehouse

proprietor,'' ``Manufacturer of tobacco products,'' ``Manufacturer of

cigarette papers and tubes,'' and ``Relanding'' to read as follows:

Sec. 275.11 Meaning of terms.

* * * * *

Export warehouse. A bonded internal revenue warehouse for the

storage of tobacco products and cigarette papers and tubes, upon which

the internal revenue tax has not been paid, for subsequent shipment to

a foreign country, Puerto Rico, the Virgin Islands, or a possession of

the United States, or for consumption beyond the jurisdiction of the

internal revenue laws of the United States.

Export warehouse proprietor. Any person who operates an export

warehouse.

Manufacturer of tobacco products. Any person who manufactures

cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own

tobacco. A manufacturer of tobacco products does not include:

(1) A person who produces cigars, cigarettes, smokeless tobacco,

pipe tobacco, or roll-your-own tobacco solely for the person's own

personal consumption or use; or

(2) A proprietor of a Customs bonded manufacturing warehouse with

respect to the operation of such warehouse.

Manufacturer of cigarette papers and tubes. Any person who makes up

cigarette papers or cigarette tubes, except for personal use or

consumption.

Relanding. Any tobacco products, cigarette papers or tubes, which

have been labeled or shipped for exportation (including to Puerto Rico)

as prescribed in this chapter, previously exported and returned within

the jurisdiction of the United States. This term does not apply to any

tobacco products, cigarette papers or tubes that are placed in

appropriately marked receptacles by travelers or passengers prior to

making their declaration to a U.S. Customs officer upon arrival in the

United States.

* * * * *

Par. 11. Paragraph (a) of Sec. 275.81 is revised to read as

follows:

Sec. 275.81 Taxpayment.

(a) General. The provisions of this section apply to tobacco

products, cigarette papers, and cigarette tubes upon which internal

revenue tax is payable, and which are imported into the United States

from a foreign country or are brought into the United States from

Puerto Rico, the Virgin Islands, or a possession of the United States.

For provisions relating to the importation of previously exported

tobacco products and cigarette papers and tubes, see section 275.82.

* * * * *

Par. 12. Add Sec. 275.82 to subpart F after the undesignated center

heading ``Release from Customs Custody * * *'' to read as follows:

Sec. 275.82 Return of exported products.

(a) The provisions of this section apply to articles imported or

brought into the United States after December 31, 1999. After such

date, the importation or bringing in of tobacco products and cigarette

papers and tubes that were previously exported from the United States

is restricted. Such products may only be imported or brought into the

United States by release from customs custody for delivery to a

manufacturer of tobacco products or cigarette papers or tubes, or to

the proprietor of an export warehouse. These products are transferred

in bond and are released from customs custody without payment of that

part of the duty attributable to internal revenue tax.

(b) The products described in paragraph (a) of this section may

only be sold, transferred, or delivered onto the domestic U.S. market

by a manufacturer of tobacco products after repackaging of the product.

For the purposes of this subsection, ``repackaging'' shall mean the

removal of the tobacco product from its original package bearing the

export marks and placement of the product in a new package. The new

packages, marks and notices must conform to the requirements of 27 CFR

part 270.

Par. 13. Add Sec. 275.83 to subpart F after the undesignated center

heading ``Release from Customs Custody of * * *'' to read as follows:

[[Page 71925]]

Sec. 275.83 Penalties and forfeiture for relanded products.

Except for the return of exported products that are specifically

authorized under Sec. 275.82:

(a) Every person who sells, relands, or receives within the

jurisdiction of the United States any tobacco products or cigarette

papers or tubes which have been labeled or shipped for exportation;

(b) Every person who sells or receives such relanded tobacco

products or cigarette papers or tubes; and,

(c) Every person who aids or abets in such selling, relanding, or

receiving, shall, in addition to the tax and any other penalty provided

for in Title 26 U.S.C., be liable for a penalty equal to the greater of

$1,000 or 5 times the amount of the tax imposed by Title 26 U.S.C. All

tobacco products and cigarette papers and tubes relanded within the

jurisdiction of the United States, and all vessels, vehicles and

aircraft used in such relanding or in removing such products, papers,

and tubes from the place where relanded, shall be forfeited to the

United States. This section shall apply only to tobacco products,

cigarette papers and tubes removed after December 31, 1999.

PART 290--EXPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND

TUBES, WITHOUT PAYMENT OF TAX, OR WITH DRAWBACK OF TAX

Par. 14. The authority citation for part 290 is revised 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, 6402,

6404, 6806, 7011, 7212, 7342, 7606, 7805; 31 U.S.C. 9301, 9303,

9304, 9306.

Par. 15. Section 290.11 is amended by adding, in alphabetical

order, the definition of ``Zone restricted status'' to read as follows:

Sec. 290.11 Meaning of terms.

* * * * *

Zone restricted status. Tobacco products, cigarettes papers and

cigarette tubes which have been taken into a foreign trade zone from

United States Customs territory for the sole purpose of exportation or

storage until exported.

* * * * *

Par. 16. Section 290.61 is revised to read as follows:

Sec. 290.61 Removals, withdrawals, and shipments authorized.

(a) Tobacco products, and cigarette papers and tubes may be removed

from a factory or an export warehouse, and cigars may be withdrawn from

a customs warehouse, without payment of tax, for direct exportation or

for delivery for subsequent exportation, in accordance with the

provisions of this part.

(b) Tobacco products and cigarette papers and tubes are not

eligible for removal or transfer in bond under this part unless they

bear the marks, labels, or notices required by this part.

Sec. 290.61a [Amended]

Par. 17. Section 290.61a is amended by removing the reference

``Form 2149 or 2150'' and adding in its place the reference ``Form

5200.14''.

Par. 18. In Sec. 290.62 the fifth sentence and the seventh sentence

of the section are amended to read as follows:

Sec. 290.62 Restriction on deliveries of tobacco products and

cigarette papers and tubes to vessels and aircraft, as supplies.

* * * For this purpose, the customs authorities may require the

master of the receiving vessel to submit for customs approval, prior to

lading, customs documentation for permission to lade the articles. * *

* Deliveries may be made to aircraft clearing through customs en route

to a place or places beyond the jurisdiction of the internal revenue

laws of the United States, and to aircraft operating on a regular

schedule between U.S. customs areas as defined in the Air Commerce

Regulations (19 CFR part 122).

* * * * *

Par. 19. Section 290.142 is revised to read as follows:

Sec. 290.142 Records.

Every export warehouse proprietor must keep in such warehouse

complete and concise records, containing the:

(a) Number of containers;

(b) Unit type (e.g., cartons, cases);

(c) Kind of articles (e.g., small cigarettes);

(d) Name of manufacturer and brand; and,

(e) Quantity of tobacco products, cigarette papers and tubes

received, removed, transferred, destroyed, lost or returned to

manufacturers or to customs warehouse proprietors. In addition to such

records, the export warehouse proprietor shall retain a copy of each

Form 5200.14 received from a manufacturer, another export warehouse

proprietor, or customs warehouse proprietor, from whom tobacco products

and cigarette papers and tubes are received and a copy of each Form

5200.14 covering the tobacco products, and cigarette papers and tubes

removed from the warehouse. The entries for each day in the records

maintained or kept under this section shall be made by the close of the

business day following that on which the transactions occur. No

particular form of records is prescribed, but the information required

shall be readily ascertainable. The records and copies of Form 5200.14

shall be retained for 3 years following the close of the calendar year

in which the shipments were received or removed and shall be made

available for inspection by any ATF officer upon request.

(Approved by the Office of Management and Budget under control

number 1512-0367)

Sec. 290.143 [Amended]

Par. 20. Section 290.143(b) is amended by removing the phrase ``2

years'' and by adding in its place the phrase ``3 years''.

Sec. 290.147 [Amended]

Par. 21. Section 290.147 is amended by removing the phrase ``2

years'' and by adding in its place the phrase ``3 years''.

Sec. 290.152 [Amended]

Par. 22. Section 290.152 is amended by removing the reference

``Form 2635'' and add in its place the reference ``Form 5620.8''.

Section 290.152 is also amended by removing the words ``two years'' and

adding in its place the phrase ``3 years''.

Sec. 290.153 [Amended]

Par. 23. Section 290.153 is amended by removing the reference to

``Form 2635 (5620.8)'' and add in its place the reference ``Form

5620.8''.

Sec. 290.154 [Amended]

Par. 24. Section 290.154 is amended by removing the reference to

``Form 2635 (5620.8)'' and add in its place the reference ``Form

5620.8''. Section 290.154 is also amended by removing the phrase ``2

years'' and by adding in its place the phrase ``3 years''.

Par. 25. Section 290.181 is revised to read as follows:

Sec. 290.181 Packages.

All tobacco products and cigarette papers and tubes will, before

removal or transfer under this subpart, be put up by the manufacturer

in packages which shall bear the label or notice, tax classification,

and mark, as required by this subpart. For purposes of this subpart,

the package does not include the cellophane wrapping material.

Sec. 290.198 [Amended]

Par. 26. Section 290.198 is amended by removing the references

``Form 2149'' and ``Form 2150'' and adding in their place the reference

``Form 5200.14''.

[[Page 71926]]

Sec. 290.199 [Amended]

Par. 27. Section 290.199 is amended by removing the reference

``Form 2149 or Form 2150'' and adding in their place the reference

``Form 5200.14''. This section is also amended by removing the words

``two years'' and adding in their place the words ``3 years''.

Sec. 290.200 [Amended]

Par. 28. Section 290.200 is amended by removing the reference to

``Form 2149 or 2150, as the case may be,'' and adding in its place the

reference ``Form 5200.14''.

Sec. 290.201 [Amended]

Par. 29. Section 290.201 is amended by removing the reference

``Form 2150'' and adding in its place the reference ``Form 5200.14''.

This section is also amended by removing the words ``two years'' and

adding in their place the words ``3 years''.

Secs. 290.202 through 290.204 [Amended]

Par. 30. Sections 290.202 through 290.204 are amended by removing

the reference ``Form 2149 or Form 2150'' and adding in its place the

reference ``Form 5200.14''.

Sec. 290.205 [Amended]

Par. 31. Section 290.205 is amended by removing the reference

``Form 2149/2150 (5200.14)'' wherever it appears in paragraphs (a)(1)

and (d) and adding in its place the reference ``Form 5200.14''.

Sec. 290.206 [Amended]

Par. 32. Section 290.206 is amended by removing the reference

``Form 2149 or 2150'' and adding in its place the reference ``Form

5200.14''.

Secs. 290.207 through 290.208 [Amended]

Par. 33. Sections 290.207 through 206.208 are amended by removing

the reference ``Form 2149 or 2150'' and adding in its place the

reference ``Form 5200.14''.

Sec. 290.210 [Amended]

Par. 34. Section 290.210 is amended by removing the reference

``Form 2149 or 2150'' and adding in its place the reference ``Form

5200.14''.

Sec. 290.213 [Amended]

Par. 35. Section 290.213 is amended by removing the reference

``Form 2150'' and adding in its place the reference ``Form 5200.14''.

Sec. 290.256 [Amended]

Par. 36. Section 290.256 is amended by removing the reference

``Form 2149'' and adding in its place ``Form 5200.14''.

Sec. 290.257 [Amended]

Par. 37. Section 290.257 is amended by removing the reference

``Form 2149'' and adding in its place ``Form 5200.14''. This section is

also amended by removing the words ``two years'' and adding in their

place the words ``3 years''.

Secs. 290.258 through 290.265 [Amended]

Par. 38. Sections 290.258 through 290.265 are amended by removing

the reference ``Form 2149'' each place it appears and adding in its

place the reference ``Form 5200.14''.

Sec. 290.266 [Amended]

Par. 39. Section 290.266 is amended by removing the reference

``Form 2150'' and adding in its place ``Form 5200.14''. This section is

also amended by removing the words ``two years'' and adding in their

place the words ``3 years''.

Sec. 290.267 [Amended]

Par. 40. Section 290.267 is amended by removing the reference

``Form 2149'' and adding in its place ``Form 5200.14''. This section is

also amended by removing the words ``two years'' and adding in their

place the words ``3 years''.

Signed: October 12, 1999.

John W. Magaw,

Director.

Approved: November 17, 1999.

John P. Simpson,

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

[FR Doc. 99-32598 Filed 12-21-99; 8:45 am]

BILLING CODE 4810-31-U