ATF

Sample Block


Bureau of Alcohol, Tobacco, Firearms and Explosives


[Federal Register: December 22, 1999 (Volume 64, Number 245)]

[Rules and Regulations]               

[Page 71937-71947]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr22de99-28]                         







[[Page 71937]]





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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, 

mdruhf@atf.gov.



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

                                                               <divide> 50 = 400);       <divide> 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

                                    <divide> 50 = 605); (605   <divide> 50 = 605);       <divide> 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

                                    <divide> 50 = 1209);       <divide> 50 = 1209);      <divide> 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:

    <bullet> 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).

    <bullet> 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).

    <bullet> 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 *

    <bullet> percentage of sale price.  12.75%                   18.063%                  20.719%

    <bullet> but not to exceed<r-       $30                      $42.50                   $48.75

     arrow>.

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

*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