Increase in Tax on Tobacco Products and Cigarette Papers and Tubes [99R-88P]

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Parts 270, 275, 290, 295 and 296

[T.D. ATF-420]

RIN: 1512-AB88

Increase in Tax on Tobacco Products and Cigarette Papers and

Tubes [99R-88P]

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

the Treasury.

ACTION: Treasury decision, final rule.

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

SUMMARY: This document implements the January 1, 2000 and January 1,

2002 tax increases on tobacco products and cigarette papers and tubes

imposed by section 9302 of the Balanced Budget Act of 1997 (Pub. L.

105-33). ATF is amending existing regulations to show the new tax

rates. This document also makes additional changes of a technical

nature.

EFFECTIVE DATE: January 1, 2000.

FOR FURTHER INFORMATION CONTACT: Marjorie D. Ruhf, Regulations

Division, Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts

Avenue, NW, Washington, DC 20226, (202) 927-8202,

[email protected].

SUPPLEMENTARY INFORMATION:

Tax Increases

Public Law 105-33, entitled ``The Balanced Budget Act of 1997''

(the Act) was enacted on August 5, 1997. Section 9302 (a) through (f)

(111 Stat. 671) increases the tax imposed by the Internal Revenue Code

of 1986 relating to tobacco products and cigarette papers and tubes in

two increments. The first tax increase applies to articles removed from

ATF or customs bond on or after January 1, 2000. The second tax

increase applies to such articles removed on or after January 1, 2002.

Section 9302(g) imposes a new tax on ``roll-your-own'' tobacco. In this

document, we are simply listing the new tax rates in the appropriate

sections of the regulations. In separate rulemaking documents, we will

make other changes to the tobacco regulations to administer the new tax

on ``roll-your-own'' tobacco, the floor stocks tax, and other

provisions of section 9302.

Tobacco regulations in 27 CFR parts 270, 275, 290, 295 and 296 that

specified only the pre-2000 tax rates are amended to show the new

rates. Examples of calculations in these regulations have been amended

to show the current and future tax rates.

Excise Tax on Cigarette Papers

The Act modifies the tax imposed on cigarette papers manufactured

in or imported into the United States. Sections 9302(c) of the Act

raises the rate of tax. Section 9302(h)(3) of the Act revises how the

excise tax on cigarette papers is applied. Previously, the excise tax

only applied to books or sets of cigarette papers that contained more

than 25 papers. As of January 1, 2000, all cigarette papers

manufactured in or imported into the United States must be taxed

without regard to the size of the book or set. The tax continues to be

computed on each 50 papers or fractional part thereof, so in the

following examples of tax computation, fractions of 50 papers are

treated as a full 50 papers:

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

Computation using tax rate applicable:

Quantity ------------------------------------------------------------------------------

Prior to 1/1/2000 1/1/2000 to 12/31/2001 1/1/2002 and after

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

1,000 books of 20 papers each.... No tax................... $4.24 (20,000 papers $4.88 (20,000 papers

50 = 400); 50 = 400);

(400 x 1.06 cents = $ (400 x 1.22 cents = $

4.24). 4.88)

1,007 books of 30 papers each.... $4.5375 (30,210 papers $6.413 (30,210 papers $7.381 (30,210 papers

50 = 605); (605 50 = 605); 50 = 605);

x 0.75 cents = $4.5375 (605 x 1.06 cents = $ (605 x 1.22 cents = $

). 6.413). 7.381)

1,007 books of 60 papers each.... $9.0675 (60,420 papers $12.8154 (60,420 papers $14.7498 (60,420 papers

50 = 1209); 50 = 1209); 50 = 1209);

(1209 x 0.75 cents = $ (1209 x 1.06 cents = (1209 x 1.22 cents =

9.0675). $12.8154). $14.7498)

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

Sale Price for Large Cigars

Regulations that refer to the wholesale price of large cigars have

been removed or amended to refer to the sale price. Before January 1,

1991, the excise tax on large cigars was based on the wholesale price,

but after that date, Public Law 101-508 changed the tax so it was based

on the sale price. Since it is unlikely ATF or industry members will

need to compute tax at the pre-1991 rates, we are deleting all

references to those rates in the regulations. Should the need arise, we

will refer to regulations that were in force at the time of removal. In

this document, we have expanded the sale price regulations to include

information contained in the old wholesale price regulations where this

information is applicable to sale price. For example, we adopt rules

for pricing of combination packages and cigars sold as ``seconds.''

Delegations of Authority

Pursuant to Treasury Decision 120-01 (formerly 221), dated June 6,

1972, the Secretary of the Treasury delegated to the Director of ATF,

the authority to enforce, among other laws, the provisions of chapter

52 of the Internal Revenue Code of 1986 (IRC). The Director has

subsequently redelegated certain of these authorities to appropriate

subordinate officers by way of various means, including by ATF

delegation orders, regional directives, or similar delegation

documents. In addition, the Secretary has placed delegations to

specific ATF officials in some of the regulations issued pursuant to

the IRC. As a result, to ascertain what particular officer is

authorized to perform a particular function under chapter 52, each of

these various delegation instruments must be consulted. Similarly, each

time a delegation of authority is revoked or redelegated, each of the

delegation documents must be reviewed and amended as necessary.

ATF has determined that this multiplicity of delegation instruments

complicates and hinders the task of determining which ATF officer is

authorized to perform a particular function. ATF also believes these

multiple delegation instruments exacerbate the administrative burden

associated with maintaining up-to-date delegations, resulting in an

undue delay in reflecting current authorities.

Accordingly, this final rule rescinds all redelegations of the

Director's authority in the revised or amended sections of the

regulations. The regulations, which specified an ATF officer by title,

are being replaced with delegations to the ``appropriate ATF officer.''

Along with this final rule, ATF is publishing a delegation order, in

which we give the organizational titles

[[Page 71938]]

of the individuals who have authority to carry out each of the

specified duties. The effect of these changes is to consolidate all

delegations of authority into one delegation instrument. This action

both simplifies the process for determining what ATF officer is

authorized to perform a particular function and facilitates the

updating of delegations in the event of a change in delegation or in

the event of a restructuring. As a result, delegations of authority

will be reflected in a more timely and user-friendly manner.

In addition to the above, this final rule also eliminates all

references in the affected regulatory sections which identify the ATF

officer with whom an ATF form is filed. Thus, in lieu of identifying

the authorized officer in the regulations, the form itself will

indicate the officer with whom it must be filed. Similarly, this final

rule also amends the affected sections of the various parts to provide

that documents other than ATF forms (such as letterhead applications,

notices and reports) will be filed with the ``appropriate ATF

officer.'' The ``appropriate ATF officer'' is the Director's delegate

and will be identified in the accompanying Delegation Order. These

changes will facilitate the identification of the officer with whom

forms and other required submissions are filed in the event that

authority to receive such submissions, or the title of the officer,

changes.

Consistent with the above, this final rule makes various technical

amendments to the affected parts of 27 CFR. Specifically, new sections

are added to recognize the authority of the Director to delegate

regulatory authorities in each part and to identify the appropriate

delegation order as the instrument reflecting such delegations. Also,

each part affected by this document is amended to provide that the

instructions on an ATF form identify the ATF officer with whom it is

filed.

Since ATF is issuing this Treasury decision to implement Public Law

105-33, we are amending only the sections that were affected by the law

change. We intend to make similar changes in delegations to the

remainder of parts 270, 275, 290, 295 and 296 in future technical

correction documents. We plan to amend each part of Title 27 of the

Code of Federal Regulations through a separate rulemaking. By amending

the regulations part by part, rather than in one large rulemaking

document and ATF Order, ATF minimizes the time expended in notifying

interested parties of current delegations of authority.

Administrative Corrections

Minor changes are also made to remove references to obsolete OMB

Control Number 1512-0362 and to reflect current ATF form numbers. The

locations in the regulations regarding the form changes are as follows:

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

Old Form New Form

Regulation citation in 27 CFR No. No.

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

270.431........................................... 2132 5230.2

270.422, 275.141.................................. 2138 5230.3

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

``Plain Language'' Changes

When we were revising the regulations to make the changes in the

tax rates, we also tried to simplify and clarify the language of the

affected regulations. We did not change any requirements of these

sections. Although we are not making a formal request for comments as

part of this rulemaking, we welcome suggestions for improving the

readability of these regulations at any time.

Administrative Procedure Act

This document merely implements parts of section 9302 of the

Balanced Budget Act of 1997 that are effective on January 1, 2000.

Therefore, we find it is unnecessary 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).

Regulatory Flexibility Act

The provisions of the Regulatory Flexibility Act relating to a

final regulatory flexibility analysis (5 U.S.C. 604) do not apply to

this final rule. We were not required to publish a general notice of

proposed rulemaking under 5 U.S.C. 553 or any other law. The revenue

effects of this rulemaking on small businesses result directly from the

underlying statute. Pursuant to section 7805(f), we have sent a copy of

this regulation to the Chief Counsel for Advocacy of the Small Business

Administration for comment on its impact on small businesses.

Executive Order 12866

This document is not a significant regulatory action within the

meaning of Executive Order 12866.

Paperwork Reduction Act

This document does not contain any new collections of information

nor does it revise existing collections of information to impose new

burdens. Consequently, the provisions of the Paperwork Reduction Act of

1995, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR

part 1320, do not apply to this document. Three sections of the

regulations that contain paperwork requirements are amended, but there

are no changes of burden as a result of these changes:

27 CFR 275.181 is revised to eliminate the requirement for

records of wholesale price; the requirement for records of sale price

is retained (1512-0368).

27 CFR 295.51 is revised to change ``wholesale'' price to

``sale'' price, and the section is reorganized to make it easier to

read (1512-0363).

27 CFR 296.74 is amended to give current and future tax

rates, to clarify the wording, and to display the number of the current

OMB approval (1512-0492).

Drafting Information

Marjorie Ruhf of the Regulations Division, Bureau of Alcohol,

Tobacco and Firearms, drafted this document.

List of Subjects

27 CFR Part 270

Administrative practice and procedure, Authority delegations,

Cigars and cigarettes, Claims, Electronic fund transfers, Excise taxes,

Labeling, Packaging and containers, Penalties, Reporting and

recordkeeping requirements, Seizures and forfeitures, Surety bonds,

Tobacco.

27 CFR Part 275

Administrative practice and procedure, Authority delegations,

Cigars and cigarettes, Claims, Customs duties and inspections,

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

and containers, Penalties, Reporting and recordkeeping requirements,

Seizures and forfeitures, Surety bonds, Tobacco, Warehouses.

27 CFR Part 290

Administrative practice and procedure, Aircraft, Authority

delegations, Cigars and cigarettes, Claims, Customs duties and

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

Packaging and containers, Penalties, Reporting and recordkeeping

requirements, Surety bonds, Tobacco, Vessels, Warehouses.

27 CFR Part 295

Administrative practice and procedure, Authority delegations,

Cigars and cigarettes, Excise taxes, Labeling, Packaging and

containers, Reporting and recordkeeping requirements, Tobacco.

27 CFR Part 296

Authority delegations, Cigars and cigarettes, Claims, Disaster

assistance,

[[Page 71939]]

Excise taxes, Penalties, Seizures and forfeitures, Surety bonds,

Tobacco.

Issuance

Title 27 CFR is amended as follows:

PART 270--MANUFACTURE OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND

TUBES

Paragraph 1. The heading of part 270 is revised to read as set

forth above.

Pars. 2-3. 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 270.11 is amended by removing the definitions for

the terms ``Determined or determination'' and ``Wholesale price,'' and

adding definitions for the terms ``Appropriate ATF officer,'' ``ATF,''

``Determine'' and ``Sale price'' to read as follows:

Sec. 270.11 Meaning of terms.

* * * * *

Appropriate ATF officer. An officer or employee of the Bureau of

Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions

relating to the administration or enforcement of this part by ATF Order

1130.15, Delegation Order--Delegation of Certain of the Director's

Authorities in 27 CFR parts 270, 275, and 296.

* * * * *

ATF. The Bureau of Alcohol, Tobacco and Firearms.

* * * * *

Determine. To establish enough information about taxable products

at the time of removal to calculate the tax, specifically the quantity

(pounds or number) and kind (for example, cigarettes, snuff, paper

tubes). Where the tax rate depends on additional information (such as

number of cigarette papers to a set before January 1, 2000 or sale

price of large cigars), that information must also be established as

part of tax determination.

* * * * *

Sale price. The price for which large cigars are sold by the

manufacturer, determined in accordance with Sec. 270.22 and used for

computation of the tax.

* * * * *

Par. 5. Section 270.21 is revised to read as follows:

Sec. 270.21 Cigar tax rates.

(a) Cigars are taxed at the following rates under 26 U.S.C.

5701(a):

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

Tax rate for removals during the years:

Type and amount -------------------------------------------------------------------------

1993 to 1999 2000 and 2001 2002 and after

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

Small cigars per thousand............. $1.125 $1.594 $1.828

Large cigars per thousand *

percentage of sale price. 12.75% 18.063% 20.719%

but not to exceed.

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

*For large cigars, the percentage tax rate applies when the sale price is $235.294 per thousand or less, and the

flat tax rate applies when the sale price is more than $235.294 per thousand.

(b) See Sec. 270.22 of this part for rules concerning determination

of sale price of large cigars.

(c) Cigars not exempt from tax under 26 U.S.C. chapter 52 and the

provisions of this part which are removed but not intended for sale

shall be taxed at the same rate as similar cigars removed for sale.

Sec. 270.22 [Removed]

Par. 6. Section 270.22 is removed.

Sec. 270.22a [Redesignated as Sec. 270.22 and revised]

Par. 7. Section 270.22a is redesignated as Sec. 270.22, and newly

redesignated Sec. 270.22 is revised to read as follows:

Sec. 270.22 Determination of sale price of large cigars.

(a) General rule. The tax imposed on large cigars is computed based

on the sale price (the price for which the large cigars are sold by the

manufacturer). In addition to money, goods or services exchanged for

cigars may be considered as part of the sale price.

(b) Special cases.--(1) In general. If there is any question

concerning the applicable sale price for tax purposes, the appropriate

ATF officer will determine such price, applying rules similar to the

constructive sale price rules in 26 U.S.C. 4216(b) and the implementing

regulations in 26 CFR 48.4216(b)-1 through 48.4216(b)-4. These

constructive sale price rules apply to cigars sold by a manufacturer at

retail, sold on consignment, or sold (otherwise than through an arm's

length transaction) at less than the fair market price. Sales of cigars

between affiliated corporations may be analyzed under the constructive

sale price rules. The appropriate ATF officer may make this analysis on

his or her own initiative or upon the written request of a

manufacturer. If ATF decides it is necessary, we will publish

constructive sale price determinations in the ATF Bulletin in

accordance with Sec. 70.701(d) of this chapter.

(2) Adjustments in sale price.--(i) Reasons for adjustment.

Adjustments to the sale price may occur as a result of a discount or

price increase by the manufacturer or as a result of an ATF

determination pursuant to paragraph (b)(1) above. In either case, the

manufacturer must make conforming changes to the tax that was computed

on the sale price before the adjustment.

(ii) Time of adjustment. If an adjustment is made before the end of

the same tax return period as the original determination of the tax,

the adjustment may be made on the same return. If the price is

increased or decreased retroactively (during a later return period),

either by the manufacturer or by ATF's determination, the manufacturer

must make an adjustment on the tax return for the current return period

in which the price change was determined.

(iii) Amount of adjustment. The taxpayer must compute the

adjustment to the tax as the difference between the tax that was paid

and the tax that should have been paid, based on the newly determined

sale price, together with interest thereon and any applicable

penalties. The interest must be computed from the time of payment of

the original tax until the time the adjustment was made. Upon request,

the appropriate ATF officer will provide information regarding interest

rates applicable to specific time periods and any applicable penalties.

(3) Pricing for different packaging. If different bona fide sale

prices are applicable to different types of packaging (e.g., boxes of

25 and boxes

[[Page 71940]]

of 50), then the cigars in each type of packaging are taxed on the

basis of their respective sale prices.

(4) Pricing of seconds. If some of an otherwise identical cigar

brand and size:

(i) Are distinctive from other such cigars because of physical

imperfections, (ii) Are offered to the consumer through clear labeling

as ``imperfects'', ``seconds'', ``throw-outs'', or a comparable

commonly understood term, and

(iii) The manufacturer has a separate sale price for such cigars,

then they are taxed on the basis of this separate sale price.

(5) Combination packages. If a manufacturer has a sale price for a

combination package containing cigars of different sizes, the cigars

are taxed based on that combination sale price. If there is no sale

price for the combination, then the cigars are taxed based on their

individual sale prices.

(6) Removals for another person. If a manufacturer makes taxable

removals of a brand and size of cigar only for distribution by others

who establish the sale price, the tax is based on such sale price even

though the manufacturer who makes the removals does not establish the

price.

Par. 8. Section 270.23 is revised to read as follows:

Sec. 270.23 Cigarette tax rates.

Cigarettes are taxed at the following rates under 26 U.S.C.

5701(b):

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

Tax rate per thousand for removals

during the years

Product --------------------------------------

1993 to 2000 and 2002 and

1999 2001 after

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

Small cigarettes................. $12 $17 $19.50

Large cigarettes up to 6\1/2\'' 25.20 35.70 40.95

long............................

Large cigarettes over 6\1/2\''

long............................ Taxed at the rate for small

cigarettes, counting each 2\3/4\

inches or fraction thereof of the

length of each as one cigarette.

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

Par. 9. Section 270.25 is revised to read as follows:

Sec. 270.25 Smokeless tobacco tax rates.

Smokeless tobacco products are taxed at the following rates under

26 U.S.C. 5701(e):

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

Tax rate per pound * for removals

during the years

Product --------------------------------------

1993 to 2000 and 2002 and

1999 2001 after

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

Snuff............................ $0.36 $0.51 $0.585

Chewing tobacco.................. 0.12 0.17 0.195

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

* Prorate tax for fractions of a pound.

Par. 10. Section Sec. 270.25a is revised to read as follows:

Sec. 270.25a Pipe tobacco and roll-your-own tobacco tax rates.

Pipe tobacco and roll-your-own tobacco are taxed at the following

rates under 26 U.S.C. 5701(f) and (g), respectively:

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

Tax rate per pound * for removals

during the years

Product --------------------------------------

1993 to 2000 and 2002 and

1999 2001 after

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

Pipe tobacco..................... $0.675 $0.9567 $1.0969

Roll-your-own tobacco............ * No tax 0.9567 1.0969

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

* Prorate tax for fractions of a pound.

Par. 11. A new Sec. 270.49 is added to read as follows:

Sec. 270.49 Delegations of the Director.

The Director has general authority to take action on all matters

under the regulations in this part 270. Some of the authorities in this

part are redelegated to ``appropriate ATF officers.'' The title of the

appropriate ATF officer for each delegation is listed by section in ATF

Order 1130.15, Delegation Order--Delegation of Certain of the

Director's Authorities in 27 CFR Parts 270, 275, and 296. ATF

delegation orders, such as ATF Order 1130.15, are available from the

ATF Distribution Center, PO Box 5950, Springfield, Virginia 22150-5190,

or from the ATF web site (http://www.atf.treas.gov).

Par. 12. Section 270.183 is amended by revising paragraph (e) to

read as follows:

Sec. 270.183 Record of tobacco products.

* * * * *

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

accordance with Sec. 270.22, except cigars that cost more than $235.294

may optionally be

[[Page 71941]]

shown as if the price were $236 per thousand);

* * * * *

Par. 13. Section 270.184 is revised to read as follows:

Sec. 270.184 Record of removals subject to tax.

(a) Requirement. Every manufacturer of tobacco products must keep a

record of tobacco products removed from the factory subject to tax. The

manufacturer must make entries in this record at the time of removal.

The record for each removal must show:

(1) The date of removal,

(2) The name and address of the person to whom shipped or

delivered,

(3) The kind and quantity of tobacco products removed, and

(4) For large cigars, show the sale price (If the sale price is

more than $235.294 per thousand, you may place a note to that effect in

the record instead of the actual price).

(b) Exceptions. (1) The record of removal may consist of the

manufacturer's commercial documents, such as copies of invoices, rather

than records prepared expressly to meet the requirements of this

section. If commercial documents are used, they must be kept at the

factory, contain all the details required by this section, and be clear

and accurate. Commercial documents that do not show specifically the

tax classification of tobacco products (including sale price of large

cigars) are still acceptable if they contain adequate information for

an ATF officer to readily ascertain the applicable tax.

(2) Where tobacco products are delivered within the factory

directly to the consumer, the record need not show the name and address

of the consumer.

Sec. 270.187 [Removed]

Par. 14. Section 270.187 is removed. and adding, in its place, a

reference to Sec. 270.22.

Sec. 270.187 Record of sales prices of large cigars.

Par. 16. Section 270.311 is amended by revising paragraph (b) to

read as follows:

Sec. 270.311 Action by claimant.

* * * * *

(b) Large cigars. Refund or credit of tax on large cigars withdrawn

from the market is limited to the lowest tax paid on that brand and

size of cigar during the required record retention period (see

Sec. 270.185), except where the manufacturer establishes that a greater

amount was actually paid. For each claim involving large cigars

withdrawn from the market, the manufacturer must include a

certification on either Form 3069 (5200.7) or Form 2635 (5620.8) to

read as follows:

The amounts claimed relating to large cigars are based on the

lowest sale price applicable to the cigars during the required

record retention period, except where specific documentation is

submitted with the claim to establish that any greater amount of tax

claimed was actually paid.

(See 26 U.S.C. 5705)

Par. 17. Section 270.351 is revised to read as follows:

Sec. 270.351 Cigarette papers.

Cigarette papers are taxed at the following rates under 26 U.S.C.

5701(c):

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

Tax rate for each 50 papers \1\ for

removals during the years:

Product --------------------------------------

1993 to 2000 and 2002 and

1999 \2\ 2001 after

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

Cigarette papers up to 6\1/2\'' $0.0075 $0.0106 $0.0122

long............................

Cigarette papers over 6\1/2\''

long............................ Use rates above, but count each 2\3/

4\ inches, or fraction thereof, of

the length of each as one cigarette

paper.

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

\1\ Tax rate for less than 50 papers is the same. The tax is not

prorated.

\2\ Before January 1, 2000, books or sets containing 25 papers or less

were not taxable. On and after January 1, 2000, all cigarette papers

are taxable.

Par. 18. Section 270.352 is revised to read as follows:

Sec. 270.352 Cigarette tubes.

Cigarette tubes are taxed at the following rates under 26 U.S.C.

5701(d):

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

Tax rate for each 50 tubes* for

removals during the years

Product --------------------------------------

1993 to 2000 and 2002 and

1999 2001 after

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

Cigarette tubes up to 6\1/2\'' $0.015 $0.0213 $0.0244

long............................

Cigarette tubes over 6\1/2\''

long............................ Use rates above, but count each 2\3/

4\ inches, or fraction thereof, of

the length of each as one cigarette

tube.

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

*Tax rate for less than 50 tubes is the same. The tax is not prorated.

Par. 19. Section 270.421 is revised to read as follows:

Sec. 270.421 General.

(a) Every manufacturer of cigarette papers and tubes must keep

records of daily operations and transactions. Records maintained must

reflect the date and number of cigarette papers and the date and number

of cigarette tubes:

(1) Manufactured;

(2) Received, without payment of tax from another factory, an

export warehouse, customs custody, or by withdrawal from the market;

(3) Removed, subject to tax;

(4) Removed, without payment of tax, for export purposes, use of

the United States or transfer in bond pursuant to Sec. 270.451; or

(5) Lost or destroyed.

(b) The entries for each day in the records maintained or kept

under this subpart must be made by the close of the business day

following that on

[[Page 71942]]

which the operations or transactions occur. No particular form of

records is prescribed, but the information required must be readily

ascertainable from the records kept.

(c) Records maintained under this section prior to January 1, 2000,

must reflect the date and number of books or sets of cigarette papers

of each different numerical content and the date and number of

cigarette tubes.

(26 U.S.C. 5741.)

Par. 20. Section 270.422 is revised to read as follows:

Sec. 270.422 General.

Every manufacturer of cigarette papers and tubes must prepare a

report on ATF Form 5230.3 in accordance with instructions for the form.

The report must be prepared at the times specified in this subpart and

must be prepared whether or not any operations or transactions occurred

during the period covered by the report. The manufacturer must retain a

copy of each report in accordance with the provisions of this subpart.

(a) Reports for periods on or after January 1, 2000. Reports

submitted must reflect the total number of cigarette papers and

cigarette tubes manufactured, received and lost or destroyed.

(b) Reports for periods prior to January 1, 2000. Reports submitted

must reflect the number of books or sets of cigarette papers of each

different numerical content and the number of cigarette tubes

manufactured, received, removed and lost or destroyed.

(26 U.S.C. 5722)

Par. 21. Section 270.431 is revised to read as follows:

Sec. 270.431 General.

Every manufacturer of cigarette papers and tubes must provide a

true and accurate inventory on ATF Form 5230.2 in accordance with

instructions for the form. Such inventory is subject to verification by

an ATF officer. The manufacturer must retain a copy of each inventory

completed on ATF Form 5230.2 in accordance with this subpart.

(a) Reports of inventory for periods on or after January 1, 2000.

Reports of inventory submitted must reflect the total number of

cigarette papers and cigarette tubes held at the times specified in the

subpart.

(b) Reports of inventory for periods prior to January 1, 2000.

Reports of inventory submitted must reflect the number of books or sets

of cigarette papers of each different numerical content and the number

of cigarette tubes held at the times specified in this subpart.

( 26 U.S.C. 5721)

PART 275--[AMENDED]

Par. 22. The authority citation for part 275 continues to read as

follows:

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

5741, 5761, 5762, 5763, 6301, 6302, 6313, 6404, 7101, 7212, 7342,

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

Par. 20. Section 275.11 is amended by removing the definitions for

the terms ``Determined or determination'' and ``Wholesale price'' and

by adding definitions for the terms ``Appropriate ATF officer,''

``ATF,'' ``Determine'' and ``Sale price'' to read as follows:

Sec. 275.11 Meaning of terms.

* * * * *

Appropriate ATF officer. An officer or employee of the Bureau of

Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions

relating to the administration or enforcement of this part by ATF Order

1130.15, Delegation Order--Delegation of Certain of the Director's

Authorities in 27 CFR parts 270, 275, and 296.

* * * * *

ATF. The Bureau of Alcohol, Tobacco and Firearms.

* * * * *

Determine. To establish enough information about taxable products

at the time of removal to calculate the tax, specifically the quantity

(pounds or number) and kind (for example, cigarettes, snuff, paper

tubes). Where the tax rate depends on additional information (such as

number of cigarette papers to a set before 1/1/2000 or sale price of

large cigars), that information must also be established as part of tax

determination.

* * * * *

Sale price. The price for which large cigars are sold by the

importer or manufacturer, determined in accordance with Sec. 275.39 and

used for computation of the excise tax.

* * * * *

Par. 23. A new Sec. 275.29 is added to read as follows:

Sec. 275.29 Delegations of the Director.

The Director has general authority to take action on all matters

under the regulations in this part 275. Some of the authorities in this

part are redelegated to ``appropriate ATF officers.'' The title of the

appropriate ATF officer for each delegation is listed by section in ATF

Order 1130.15, Delegation Order--Delegation of Certain of the

Director's Authorities in 27 CFR parts 270, 275, and 296. ATF

delegation orders, such as ATF Order 1130.15, are available from the

ATF Distribution Center, PO Box 5950, Springfield, Virginia 22150-5190,

or from the ATF web site (http://www.atf.treas.gov).

Par. 24. Section 275.30 is revised to read as follows:

Sec. 275.30 Pipe tobacco and roll-your-own tobacco.

Pipe tobacco and roll-your-own tobacco are taxed at the following

rates under 26 U.S.C. 5701(f) and (g), respectively:

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

Tax rate per pound \1\ for removals during the years

Product -------------------------------------------------------------------------

1993 to 1999 2000 and 2001 2002 and after

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

Pipe tobacco.......................... $0.675 $0.9567 $1.0969

Roll-your-own tobacco................. No tax 0.9567 1.0969

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

\1\ Prorate tax for fractions of a pound.

Par. 25. Section 275.31 is revised to read as follows:

Sec. 275.31 Cigar tax rates.

(a) Cigars are taxed at the following rates under 26 U.S.C.

5701(a):

[[Page 71943]]

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

Tax rate for removals during the years

Product -------------------------------------------------------------------------

1993 to 1999 2000 and 2001 2002 and after

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

Small cigars (per thousand)........... $1.125 $1.594 $1.828

Large cigars \1\

percentage of sale price.......... 12.75% 18.063% 20.719%

but not to exceed per thousand.... $30 $42.50 $48.75

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

\1\ For large cigars, the percentage tax rate applies when the sale price is $235.294 per thousand or less, and

the flat tax rate applies when the sale price is more than $235.294.

(b) See Sec. 275.39 of this part for rules concerning determination

of sale price of large cigars.

(c) Cigars not exempt from tax under 26 U.S.C. chapter 52 and the

provisions of this part which are removed but not intended for sale

shall be taxed at the same rate as similar cigars removed for sale.

Par. 26. Section 275.32 is revised to read as follows:

Sec. 275.32 Cigarette tax rates.

Cigarettes are taxed at the following rates under 26 U.S.C.

5701(b):

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

Tax rate per thousand for removals during the years

Product -------------------------------------------------------------------------

1993 to 1999 2000 and 2001 2002 and after

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

Small cigarettes...................... $12 $17 $19.50

Large cigarettes up to 6\1/2\'' long.. 25.20 35.70 40.95

Large cigarettes over 6\1/2\'' long... Use tax rates for small cigarettes, but count each 2\3/4\ inches or

fraction thereof of the length of each as one cigarette.

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

Par. 27. Section 275.33 is revised to read as follows:

Sec. 275.33 Smokeless tobacco tax rates.

Smokeless tobacco products are taxed at the following rates under

26 U.S.C. 5701(e):

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

Tax rate per pound \1\ for removals

during the years

Product --------------------------------------

1993 to 2000 or 2002 and

1999 2001 after

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

Snuff............................ $0.36 $0.51 $0.585

Chewing tobacco.................. $0.12 $0.17 $0.195

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

\1\ Prorate tax for fractions of a pound.

Par. 28. Section 275.34 is revised to read as follows:

Sec. 275.34 Cigarette papers.

Cigarette papers are taxed at the following rates under 26 U.S.C.

5701(c):

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

Tax rate for each 50 papers \1\ for

removals during the years

Product --------------------------------------

1993 to 2000 or 2002 and

1999 \2\ 2001 after

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

Cigarette papers up to 6\1/2\'' $0.0075 $0.0106 $0.0122

long............................

Cigarette papers over 6\1/2\''

long............................ Use rates above, but count each 2\3/

4\ inches, or fraction thereof, of

the length of each as one cigarette

paper.

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

\1\ Tax rate for less than 50 papers is the same. The tax is not

prorated.

\2\ Before January 1, 2000, books or sets containing 25 papers or less

were not taxable. On and after January 1, 2000, all cigarette papers

are taxable.

Par. 29. Section 275.35 is revised to read as follows:

Sec. 275.35 Cigarette tubes.

Cigarette tubes are taxed at the following rates under 26 U.S.C.

5701(d):

[[Page 71944]]

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

Tax rate for each 50 tubes \1\ for

removals during the years

Product --------------------------------------

1993 to 2000 and 2002 and

1999 2001 after

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

Cigarette tubes up to 6\1/2\'' $0.015 $0.0213 $0.0244

long............................

Cigarette tubes over 6\1/2\''

long............................ Use rates above, but count each 2\3/

4\ inches, or fraction thereof, of

the length of each as one cigarette

tube.

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

\1\ Tax rate for less than 50 tubes is the same. The tax is not

prorated.

Par. 30. Section 275.39 is amended to read as follows:

Sec. 275.39 Determination of sale price of large cigars.

The tax imposed on large cigars is computed based on the sale price

(the price for which the large cigars are sold by the importer or

manufacturer). In addition to money, goods or services exchanged for

cigars may be considered as part of the sale price. See Sec. 270.22(b)

of this chapter for information on determining the sale price in

special cases.

Par. 31. Section 275.81 is amended by revising paragraphs (c)(1),

(c)(4)(ii) and (c)(4)(iii) to read as follows:

Sec. 275.81 Taxpayment.

* * * * *

(c) * * *

(1) For cigarette papers: For cigarette papers imported on or after

January 1, 2000, the importer will show the total number of cigarette

papers, the rate of tax, and the amount of tax due. For cigarette

papers imported prior to January 1, 2000, the importer will show the

number of books or sets, the number of papers in each book or set, the

rate of tax, and the amount of tax due.

* * * * *

(4) * * *

(ii) For large cigars with a sale price of not more than $235.294

per thousand, the number and total sale price of such cigars;

(iii) For large cigars with a sale price of more than $235.294 per

thousand, the number of cigars;

* * * * *

Par. 32. Section 275.107 is amended by revising paragraph (c)(4) to

read as follows:

Sec. 275.107 Procedures at port of entry.

* * * * *

(c) * * *

(4) The number of cigarette papers. If imported prior to January 1,

2000, the number of books or sets of cigarette papers of each different

numerical content.

* * * * *

Par. 33. Section 275.110 is amended by revising paragraphs (b) and

(c) to read as follows:

Sec. 275.110 Computation of tax and execution of agreement to pay tax.

* * * (b) the number and total sale price of large cigars with a

price of not more than $235.294 per thousand to be shipped; (c) the

number of large cigars with a sale price of more than $235.294 per

thousand to be shipped.

* * * * *

Par. 34. Section 275.117 is amended by revising paragraphs (b) and

(c) to read as follows:

Sec. 275.117 Procedure at port of entry.

* * * (b) the number and sale price of large cigars with a sale

price of not more than $235.294 per thousand, (c) the number of large

cigars with a sale price of more than $235.294 per thousand, * * *

* * * * *

Par. 35. Section 275.139 is amended by revising paragraphs (b) and

(c) to read as follows:

Sec. 275.139 Records.

* * * * *

(b) The sale price of large cigars removed subject to tax, except

that if the price is more than $235.294 per thousand, it may be shown

as if it were $236 per thousand.

(c) Cigarette papers:

(1) Before January 1, 2000, the date and number of books or sets of

cigarette papers of each numerical content.

(2) On and after January 1, 2000, the date and number of cigarette

papers.

* * * * *

Par. 36. Section 275.170 is amended by revising the section heading

and paragraph (b) to read as follows:

Sec. 275.170 Reduction of tobacco products to materials; ATF action.

* * * * *

(b) Large cigars. Refund or credit of tax on large cigars withdrawn

from the market is limited to the lowest tax applicable to that brand

and size of cigar during the required record retention period (see

Sec. 275.22) except where the importer establishes that a greater

amount was actually paid. For each claim involving large cigars

withdrawn from the market, the importer must include a certification on

either ATF Form 3069 (5200.7) or ATF Form 2635 (5620.8) to read as

follows:

The amounts claimed relating to large cigars are based on the

lowest sale price applicable to the cigars during the required

record retention period, except where specific documentation is

submitted with the claim to establish that any greater amount of tax

claimed was actually paid.

(See 26 U.S.C. 5705)

Par. 37. Section 275.172 is amended by revising paragraph (b) to

read as follows:

Sec. 275.172 Return to nontaxpaid status; action by taxpayer.

* * * * *

(b) Large cigars. Refund or credit of tax on large cigars withdrawn

from the market is limited to the lowest tax applicable to that brand

and size of cigar during the required record retention period (see

Sec. 275.22) except where the importer establishes that a greater

amount was actually paid. For each claim involving large cigars

withdrawn from the market, the importer must include a certification on

either ATF Form 3069 (5200.7) or ATF Form 2635 (5620.8) to read as

follows:

The amounts claimed relating to large cigars are based on the

lowest sale price applicable to the cigars during the required

record retention period, except where specific documentation is

submitted with the claim to establish that any greater amount of tax

claimed was actually paid.

(See 26 U.S.C. 5705)

Par. 38. Section 275.181 is revised to read as follows:

Sec. 275.181 Records of large cigars.

Every person who imports large cigars for sale within the United

States must keep such records as are necessary to establish and verify

the sale price that applies to large cigars removed (entered or

withdrawn).

(a) Basic record. The importer must keep a record to show each sale

price (as determined under Sec. 275.39), which is applicable to large

cigars removed. No later than the tenth business day in

[[Page 71945]]

January of each year the importer must prepare such a record to show

the sale price in effect on the first day of that year for each brand

and size of large cigars. The importer must note any change in a price

from that shown in the record within ten business days after such

change in price. The record must be a continuing one for each brand and

size of cigar (and type of packaging, if pertinent), so that the

taxable price on any date may be readily ascertained. If an importer

removes new types of large cigars after the beginning of the year, the

importer must enter the sale price and its effective date for such

large cigars in the basic record within ten business days after such

removal.

(b) Copies of price announcements. The importer must keep a copy of

each general announcement that is issued internally or to the trade

about establishment or change of large cigar sale prices. If the copy

does not show the actual date when issued it must be annotated to show

this information.

(c) Copies of entry and withdrawal forms. The importer must keep a

copy of each customs entry or withdrawal form on which internal revenue

tax for large cigars is declared pursuant to Sec. 275.81.

(d) Alternative record. If an importer has so few import

transactions and/or brands and sizes of large cigars that retention of

an appropriate copy of each entry and withdrawal form required under

paragraph (c) of this section will provide an adequate record of sale

prices, then the record required under paragraph (a) of this section

need not be kept. In such case the entry and withdrawal forms must

identify the brands and sizes of cigars covered and show the

corresponding quantity and sale price for each. If such information was

not originally entered on the form it may be included by annotation.

Whenever the appropriate ATF officer finds that alternative records

being kept pursuant to this paragraph are inadequate for the intended

purpose, he or she may so notify the importer in writing, after which

time the importer must keep the record required under paragraph (a) of

this section.

(Approved by the Office of Management and Budget under control

number 1512-0368)

PART 290--[AMENDED]

Par. 39. The authority citation for part 290 continues to read as

follows:

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

5713, 5721-5723, 5731, 5741, 5751, 6061, 6065, 6151, 6402, 6404,

6806, 7011, 7212, 7342, 7606, 7805, 31 U.S.C. 9301, 9303, 9304,

9306.

Par. 40. Section 290.11 is amended by removing the definition for

the term ``wholesale price'' and adding a definition for the term

``sale price'' to read as follows:

Sec. 290.11 Meaning of terms.

* * * * *

Sale price. The price for which large cigars are sold by the

manufacturer, determined in accordance with Sec. 270.22 or Sec. 275.39.

* * * * *

PART 295--[AMENDED]

Par. 41. The authority citation for part 295 continues to read as

follows:

Authority: 26 U.S.C. 5703, 5704, 5705, 5723, 5741, 5751, 5762,

5763, 6313, 7212, 7342, 7606, 7805, 44 U.S.C. 3504(h).

Par. 42. Section 295.11 is amended by removing the definition for

the term ``Wholesale price'' and adding a definition for the term

``Sale price'' to read as follows:

Sec. 295.11 Meaning of terms.

* * * * *

Sale price. The price for which large cigars are sold by the

manufacturer or importer, determined in accordance with Sec. 270.22 or

Sec. 275.39 and used in computation of the tax.

* * * * *

Par. 43. Section 295.51 is revised to read as follows:

Sec. 295.51 Supporting records.

(a) Records of removals. Every manufacturer who removes tobacco

products, and cigarette papers and tubes under this part must, in

addition to the records kept under part 270 of this chapter, keep a

supporting record of such removals and must make appropriate entries

therein at the time of removal. The supporting record for each removal

must show:

(1) The date of removal;

(2) The name and address of the Federal agency to which shipped or

delivered;

(3) The kind and quantity and,

(4) for large cigars, the sale price.

(b) Records of returns. If any tobacco products, or cigarette

papers or tubes removed under this part are returned to the factory,

such returns must be noted in the supporting record.

(c) Commercial records. Where the manufacturer keeps, at the

factory, copies of invoices or other commercial records containing the

information required as to each removal, in such manner that the

information may be readily ascertained therefrom, such copies will be

considered the supporting record required by this section.

(d) Retention period. The manufacturer must retain the supporting

record for 3 years following the close of the year covered therein. The

record must be made available for inspection by any ATF officer upon

request.

(Approved by the Office of Management and Budget under control

number 1512-0363)

(See 26 U.S.C. 5741)

PART 296--[AMENDED]

Par. 44. The authority citation for part 296 continues to read as

follows:

Authority: 18 U.S.C. 2341-2346, 26 U.S.C. 5708, 5751, 5761-5763,

6001, 6601, 6621, 6622, 7212, 7342, 7602, 7606, 7805, 44 U.S.C.

3504(h), 49 U.S.C. 782.

Par. 45. The heading of subpart C is revised to read as follows:

Subpart C--Disaster Loss Claims

Par. 46. Section 296.72 is amended by removing the definition for

the term ``Wholesale price'' and adding definitions for the terms

``Appropriate ATF officer'' and ``Sale price'' to read as follows:

Sec. 296.72 Meaning of terms.

* * * * *

Appropriate ATF officer. An officer or employee of the Bureau of

Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions

relating to the administration or enforcement of this part by ATF Order

1130.15, Delegation Order--Delegation of Certain of the Director's

Authorities in 27 CFR Parts 270, 275, and 296.

* * * * *

Sale price. The price for which large cigars are sold by the

manufacturer or importer, determined in accordance with Sec. 270.22 or

275.39 and used in computation of the tax.

* * * * *

Par. 47. Sections 296.74 through 296.77 are revised to read as

follows:

Sec. 296.74 Execution of claims.

Disaster loss claims for tobacco products or cigarette papers or

tubes must be executed on ATF Form 2635 (5620.8), Claim--Alcohol,

Tobacco and Firearms Taxes, in accordance with the instructions on the

form. If a claim involves taxes on both domestic and imported products,

the quantities of each must be shown separately in the claim. Prepare a

separate claim in respect of customs duties.

Sec. 296.75 Required information for claim.

The claim should contain the following information:

(a) That the tax on such tobacco products, or cigarette papers or

tubes

[[Page 71946]]

has been paid or determined and customs duty has been paid;

(b) That such tobacco products, or cigarette papers or tubes were

lost, rendered unmarketable, or condemned by a duly authorized

official, by reason of a disaster;

(c) The type and date of occurrence of the disaster and the

location of the tobacco products, or cigarette papers or tubes at that

time;

(d) That the claimant was not indemnified by any valid claim of

insurance or otherwise in respect of the tax, or tax and duty, on the

tobacco products, or cigarette papers or tubes covered by the claim;

(e) That no amount of internal revenue tax or customs duty claimed

has been or will be otherwise claimed under any other provision of law

or regulations,

(f) That the claimant is entitled to payment under this subpart,

and

(g) The claim must set forth the quantity and kind of tobacco

products and cigarette papers and tubes in sufficient detail to

calculate the amount of tax and duty paid on these products,

substantially as shown in the examples below:

[Example using 1993-1999 Rates]

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

Quantity Article Rate of tax Amount

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

20,000................................ Small cigars.................. $1.125 per thousand........... $22.50

1,000................................. Large cigars--sale price $100/ 12.75% of sale price.......... 12.75

thousand.

500................................... Large cigars--sale price $236/ $30 per thousand.............. 15.00

thousand.

10,000................................ Small cigarettes.............. $12 per thousand.............. 120.00

5,000................................. Large cigarettes.............. $25.20 per thousand........... 126.00

2,000 sets............................ Cigarette papers--50 per set.. $0.0075 per set............... 15.00

1,000 sets............................ Cigarette papers--100 per set. $0.015 per set................ 15.00

1,000................................. Cigarette tubes............... $0.015 per 50 tubes........... 0.30

100 lbs............................... Chewing tobacco............... $0.12 per pound............... 12.00

200 lbs............................... Snuff......................... $0.36 per pound............... 72.00

100 lbs............................... Pipe tobacco.................. $0.675 per pound.............. 67.50

300 lbs............................... Roll-your-own tobacco......... $0 per pound.................. ........

Total claimed..................... ............................ ............................ 478.05

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

[Example using 2000-2001 Rates]

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

Quantity Article Rate of tax Amount

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

20,000................................ Small cigars.................. $1.594 per thousand........... $31.88

1,000................................. Large cigars--sale price $100/ 18.063% of sale price......... 18.06

thousand.

500................................... Large cigars--sale price $236/ $42.50 per thousand........... 21.25

thousand.

10,000................................ Small cigarettes.............. $17.00 per thousand........... 170.00

5,000................................. Large cigarettes.............. $35.70 per thousand........... 178.50

199,975............................... Cigarette papers.............. $0.0106 per 50 papers......... 42.40

1,000................................. Cigarette tubes............... $0.0213 per 50 tubes.......... 0.43

100 lbs............................... Chewing tobacco............... $0.17 per pound............... 17.00

200 lbs............................... Snuff......................... $0.51 per pound............... 102.00

100 lbs............................... Pipe tobacco.................. $0.9567 per pound............. 95.67

300 lbs............................... Roll-your-own tobacco......... $0.9567 per pound............. 287.01

Total claimed..................... ............................ ............................ 964.20

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

[Example using rates for 2002 and After]

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

Quantity Article Rate of tax Amount

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

20,000................................ Small cigars.................. $1.828 per thousand........... 36.56

1,000................................. Large cigars--sale price $100/ 20.719% of sale price......... 20.72

thousand.

500................................... Large cigars--sale price $236/ $48.75 per thousand........... 24.38

thousand.

10,000................................ Small cigarettes.............. $19.50 per thousand........... 195.00

5,000................................. Large cigarettes.............. $40.95 per thousand........... 204.75

199,975............................... Cigarette papers.............. $0.0122 per 50 papers......... 48.80

1,000................................. Cigarette tubes............... $0.0244 per 50 tubes.......... 0.49

100 lbs............................... Chewing tobacco............... $0.195 per pound.............. 19.50

200 lbs............................... Snuff......................... $0.585 per pound.............. 117.00

100 lbs............................... Pipe tobacco.................. $1.0969 per pound............. 109.69

300 lbs............................... Roll-your-own tobacco......... $1.0969 per pound............. 329.07

Total claimed..................... ............................ ............................ 1,105.96

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

Sec. 296.76 Supporting evidence.

The claimant must support the claim with any available evidence

(such as inventories, statements, invoices, bills, records, stamps, and

labels), relating to the tobacco products or cigarette papers or tubes

on hand at the time of the disaster and claimed to have been lost,

rendered unmarketable, or condemned as a result thereof. If the claim

is for refund of duty, the claimant must furnish, if practicable, the

customs entry number, date of entry, and the name of the port of entry.

296.77 Time and place of filing.

Disaster loss claims must be filed within 6 months after the date

on which the President makes the determination that the disaster has

occurred. All forms, including claims for duty on imported products,

must be filed with the appropriate ATF officer.

[[Page 71947]]

Par. 48. A new undesignated centerheading and Sec. 296.81 are added

to the end of subpart C to read as follows:

Administrative Provisions

Sec. 296.81 Delegations of the Director.

The Director has general authority to take action on all matters

under this subpart. Some of the authorities in this subpart are

redelegated to ``appropriate ATF officers.'' The title of the

appropriate ATF officer for each section is listed in ATF Order

1130.15, Delegation Order--Delegation of Certain of the Director's

Authorities in 27 CFR parts 270, 275, and 296. ATF delegation orders,

such as ATF Order 1130.15, are available from the ATF Distribution

Center, P.O. Box 5950, Springfield, Virginia 22150-5190, or from the

ATF web site (http://www.atf.treas.gov).

Signed: October 5, 1999.

John W. Magaw,

Director.

Approved: October 27, 1999.

John P. Simpson,

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

[FR Doc. 99-32605 Filed 12-21-99; 8:45 am]

BILLING CODE 4810-31-U