ATF

Sample Block


Bureau of Alcohol, Tobacco, Firearms and Explosives


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

[Rules and Regulations]               

[Page 71917-71926]

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

[DOCID:fr22de99-26]                         





[[Page 71917]]



_______________________________________________________________________



Part IV











Department of the Treasury











_______________________________________________________________________







Bureau of Alcohol, Tobacco and Firearms







_______________________________________________________________________







27 CFR Part 200, et al.







Implementation of Public Law 105-33, Section 9302, Relating to Tobacco 

Importation Restrictions, Markings, Minimum Manufacturing Requirements, 

and Penalty Provisions, etc.; Final and Proposed Rules





[[Page 71918]]







DEPARTMENT OF THE TREASURY



Bureau of Alcohol, Tobacco and Firearms



27 CFR Parts 200, 270, 275 and 290



[T.D. ATF-421]

RIN 1512-AB99



 

Implementation of Public Law 105-33, Section 9302, Relating to 

Tobacco Importation Restrictions, Markings, Minimum Manufacturing 

Requirements, and Penalty Provisions (98R-369P)



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

the Treasury.



ACTION: Temporary rule (Treasury decision).



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



SUMMARY: This temporary rule implements several provisions of the 

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

restrictions on the importation of previously exported tobacco 

products, requires markings on tobacco products or cigarette papers and 

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

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

jurisdiction of the United States, tobacco products or cigarette papers 

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

removed after the effective date, and authorizes the Secretary to 

prescribe minimum capacity or activity requirements as a criteria for 

issuance of a manufacturer's permit.

    The temporary rule implements these changes in law by providing new 

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

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

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

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

effect until superseded by final regulations.

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

issuing a notice of proposed rulemaking that invites comments on this 

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

temporary rule.



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



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

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

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

tobacco@atf.gov.



SUPPLEMENTARY INFORMATION:



Background



    This temporary rule implements several provisions in section 9302 

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

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

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

to tobacco products, cigarette papers and tubes importation 

restrictions, markings, minimum manufacturing requirements and penalty 

provisions concerning tobacco products, and cigarette papers and tubes.

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

more effectively enforce the collection of Federal excise taxes on such 

products. These provisions protect the Federal excise tax revenues 

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

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

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

impose ``expanded compliance measures designed to prevent the diversion 

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

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

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

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



Marks, Labels and Notices



Current Law



    The Federal excise tax on tobacco products, and cigarette papers 

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

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

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

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

to transfer tobacco products and cigarette papers and tubes, without 

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

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

tobacco products means any person who manufactures cigars, cigarettes, 

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

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

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

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

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

export warehouse proprietor means one who operates an export warehouse, 

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

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

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

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

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

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

United States, or for consumption beyond the jurisdiction of the 

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

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

of the excise tax. Current ATF regulations which implement these 

provisions are located in 27 CFR part 290.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

marking requirement helps us to determine which tobacco products are 

intended for export. The regulations are a valuable enforcement 

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

easily determine which products have been exempt from taxation and 

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

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

to whether it has been Federally taxpaid.



New Law



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

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

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

proper marks, labels and



[[Page 71919]]



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

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

labels and notices required on products that are exempt from taxation 

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

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

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

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

intended for exportation bear the proper markings. Congress also wanted 

to require that taxpaid products that are ultimately sold on the 

domestic market must not bear exportation markings. Allowing products 

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

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

the product has been taxpaid.

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

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

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

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

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

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

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

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

cigarette papers and tubes may not be removed for exportation without 

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

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

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

required marks, labels, or notices.

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

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

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

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

actual material that holds and encloses the tobacco products, and 

cigarette papers or tubes. This amended definition clarifies placement 

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

Congressional intent to prevent diversion of tobacco products, we 

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

for export are clear and not easily destroyed.



Minimum Manufacturing Activity Requirements



Current Law



    Section 5712 currently requires that every person, before 

commencing business as a manufacturer of tobacco products or as an 

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

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

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

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

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

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

business experience, financial standing or trade connections 

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

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

made a material false statement on the application. These factors 

enable ATF to ensure that those engaged in the business of 

manufacturing tobacco products will adequately protect the revenue and 

comply with the law and regulations.



New Law



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

adding an additional factor for rejecting and denying an application 

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

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

does not meet such minimum capacity or activity requirements as the 

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

authorized to establish minimum capacity or activity requirements, and 

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

capacity or activity requirements. Congress enacted this provision to 

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

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

will adequately protect the revenue and comply with the law and 

regulations.

    In promulgating regulations that establish minimum capacity or 

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

want to establish criteria that would effectively exclude small tobacco 

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

to establish criteria that will ensure that only those actually engaged 

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

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

exclude any persons who are not legitimate manufacturers and whose 

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

tax deferral benefits that a permit might facilitate.



Small Manufacturers



    Section 5712 requires that prior to engaging in the business of 

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

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

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

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

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

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

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

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

minimum capacity or activity criteria that would exclude small tobacco 

products manufacturers.



Downstreaming of Taxes



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

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

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

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

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

obtain a permit and establish bonded premises for the primary purpose 

of receiving tobacco products in bond and delaying payment of Federal 

excise taxes.

    The Federal excise tax on tobacco products attaches to the products 

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

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

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

Generally, tobacco products are distributed under a three-tier 

distribution system. Once the manufacturer pays Federal excise tax 

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

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

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

the wholesaler.

    As discussed previously, section 5704 provides that tobacco 

products may be transferred from a manufacturer or export warehouse 

proprietor to another manufacturer or export warehouse proprietor 

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

business could attempt to set up one or more wholesale warehouses



[[Page 71920]]



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

permit for each wholesale warehouse. Using the in bond transfer 

provision provided by section 5704, each warehouse would then be 

eligible to receive tobacco products in bond at each wholesale 

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

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

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

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

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

potentially beneficial for manufacturers, since they can effectively 

delay taxpayment until the product is removed from essentially the 

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

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

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

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

of manufacturing tobacco products. It also contravenes the safeguards 

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

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

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

proliferation of tax payment points, if this approach becomes widely 

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

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

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

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

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

true manufacturing level, we can decrease the likelihood that taxable 

product will evade proper tax payment.

    Recognizing these concerns, ATF wants to ensure that the new 

minimum manufacturing criteria would prevent issuance of a permit to 

businesses that want to receive tobacco products in bond and delay 

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

regulations whereby we will continue to issue permits to small 

manufacturers of tobacco products, despite limited production capacity, 

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

purposes of receiving in-bond untaxed cigarettes.



Minimum Manufacturing Activity Criteria for Tobacco Products 

Manufacturers



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

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

principal business activity under such permit will be the original 

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

person whose proposed principal activity under such permit will be to 

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

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

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

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

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

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

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

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

tobacco products received or transferred in bond under a particular 

permit may not exceed the quantity of tobacco products manufactured 

under that permit for any given month.

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

whose primary activity is the manufacture of tobacco products, receive 

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

regulations effectively accommodate small producers, while protecting 

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

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

activity criterion as a basis for rejecting an application for a 

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

suspension of tobacco permits, because we already require compliance 

with regulations issued under the IRC.



Importers and Export Warehouse Proprietors



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

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

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

will not impose minimum capacity or activity criteria for importers at 

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

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

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

permits. However, ATF will consider imposing minimum manufacturing or 

activity criteria on importers and export warehouse proprietors if the 

need should arise.



Import Restrictions on Previously Exported Tobacco Products, 

Cigarette Papers and Tubes



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

entitled ``Restriction on importation of previously exported tobacco 

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

conditions under which previously exported tobacco products, and 

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

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

imported or brought into the United States as provided in section 

5704(d).

    Section 5704(d) allows previously exported tobacco products and 

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

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

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

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

tobacco products to be lawfully transferred to any manufacturer of 

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

warehouse proprietor. The law does not mandate that the previously 

exported products return to its original manufacturer or export 

warehouse proprietor.

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

exported tobacco products and cigarette papers and tubes may be 

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

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

bond transfer. New section 5754 precludes the importation and tax 

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

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

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

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

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

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

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

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

275.82.

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

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

CFR 275.81 distinguishes between tobacco products and cigarette papers 

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

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

CFR 275.82 discusses



[[Page 71921]]



the new restrictions on the return of exported products.



Penalty and Forfeiture Provisions



    In addition to the above restrictions on importations, section 9302 

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

manufacturers or export warehouse proprietors, who sell, reland or 

receive tobacco products or cigarette papers or tubes that have been 

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

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

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

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

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

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

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



Exemptions



    The civil penalties do not apply to a manufacturer or export 

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

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



Application of Effective Dates



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

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

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

cigarette papers or tubes from the factory or from internal revenue 

bond under section 5704, as the Secretary shall by regulation 

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

smuggling or other unlawful importation of such article into the United 

States.''

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

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

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

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

for export and removed from a manufacturer or export warehouse 

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

States on or after January 1, 2000.

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

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

packages bearing export marks that were lawfully removed from Customs 

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

lawful products and not subject to the civil penalty under section 

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

new penalty provisions have been added to 27 CFR 275.83.

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

the domestic market will contain tobacco products that have been 

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

for export that have been unlawfully introduced into the domestic 

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

differentiate between the products that have been lawfully removed and 

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

marking requirements under 27 CFR 290.185 for products manufactured 

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

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

decided that voluntary commercial marks placed on packages by the 

tobacco industry will enable us to distinguish between these products. 

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

marking on products manufactured after December 31, 1999 to 

differentiate between products removed if future investigations 

disclose the need to do so.



Repackaging



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

this section, tobacco products and cigarette papers and tubes 

previously exported from the United States may only be imported or 

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

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

exported and returned may be released from customs custody, without 

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

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

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

qualified manufacturer of tobacco products or cigarette papers and 

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

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

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

prohibits the sale of relanded tobacco product bearing export markings.

    Although manufacturers and export warehouse proprietors are 

authorized to receive relanded tobacco products or cigarette papers or 

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

there are limitations on what manufacturers and export warehouse 

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

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

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



Export Warehouses



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

internal revenue warehouse for the storage of tobacco products and 

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

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

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

consumption beyond the jurisdiction of the internal revenue laws of the 

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

export warehouse. Export warehouse proprietors are authorized to store 

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

subsequent exportation. Under the IRC, an export warehouse proprietor 

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

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

market. Export warehouses are specifically established under the law to 

facilitate the exportation of tobacco products without payment of the 

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

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

manufacturer. Because there is no authority for the export warehouse 

proprietor to pay the excise tax and distribute tobacco products onto 

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

receive relanded tobacco products, transfer relanded tobacco products 

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

products. Export warehouse proprietors may also destroy these relanded 

tobacco products.



Manufacturers



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

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

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

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

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

    As stated above, the Secretary has the general authority to 

prescribe packaging and marking requirements for tobacco products. See 

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

regulations under 27 CFR 290.185 which require that products removed 

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

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



[[Page 71922]]



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

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

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

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

export for enforcement purposes. In addition, ATF has prescribed 

regulations under 27 CFR 290.222 which require that tobacco products 

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

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

Export With Drawback of Tax.''

    However, previously exported products that are relanded in the 

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

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

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

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

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

requirements is severely reduced if these products are allowed in the 

domestic market. ATF has concluded that since relanded tobacco products 

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

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

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

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

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

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

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

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

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

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

these export markings and bringing relanded products into compliance 

with the domestic marking and labeling requirements. We have considered 

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

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

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

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

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

exempt notice would not necessarily mean that the Federal excise tax 

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

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

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

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

manufacturer who distributes relanded tobacco products onto the 

domestic market, must remove the product from its original packages 

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

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

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

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

repackaging of these reimported products before they are introduced in 

domestic commerce.

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

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

eligible to receive relanded tobacco products, and cigarette papers and 

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

repackaged under the laws and regulations for products not intended for 

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

requirements for repackaging under these circumstances. Also, 

regulations have been added at 27 CFR 270.213 which notify 

manufacturers that tobacco products marked for export are not eligible 

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

products.

    Finally, similar to an export warehouse proprietor, a manufacturer 

may also transfer the tobacco products to another manufacturer or 

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

or destroy these relanded tobacco products.



Miscellaneous Changes



Form Numbers



    In addition to the changes to the regulations necessitated by 

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

changes that update the references to ATF Form numbers within the 

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

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

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

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

CFR 290.152 through 290.154 are also amended to change all references 

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

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

obsolete references to a Customs form and regulatory citation.



Record Retention of ATF Forms



    Minor changes are being made in the regulations to reflect the 

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

be retained. The regulations are amended to change the records 

retention period from 2 years to 3 years.



Manufacturer's Record



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

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

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



Export Warehouse Records



    The records required to be maintained by an export warehouse 

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

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

manufacturer and brand name of products: received, removed, 

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

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

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



Definitions



    To clarify the regulations, several definitions are being added to 

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

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

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

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

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

``zone restricted status.''



Regulatory Flexibility Act



    Because no notice of proposed rulemaking is required, the 

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

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

businesses flow directly from the underlying statute. Likewise, any 

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

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

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

Chief Counsel for Advocacy of the Small Business Administration for 

comment on its impact on small business.



[[Page 71923]]



Executive Order 12866



    It has been determined that this temporary rule is not a 

significant regulatory action as defined by Executive Order 12866 

because any economic effects flow directly from the underlying statute 

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

not required.



Paperwork Reduction Act



    This regulation is being issued without prior notice and public 

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

For this reason, the collection of information contained in this 

regulation has been reviewed under the requirements of the Paperwork 

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

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

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

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

a collection of information unless it displays a valid control number 

assigned by OMB.

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

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

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

that the tax revenue is protected. Without these recordkeeping 

requirements, no recording of the data elements pertaining to these 

operations would be prescribed.

    For further information concerning this collection of information, 

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

the preamble of the cross-referenced notice of proposed rulemaking 

published in the proposed rules section of this Federal Register.



Administrative Procedure Act



    Because this document merely implements sections of the law which 

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

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

contrary to the public interest and impracticable to issue this 

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

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



Drafting Information



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

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

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

Department also participated in developing this document.



List of Subjects



27 CFR Part 200



    Administrative practice and procedure, Authority delegations.



27 CFR Part 270



    Administrative practice and procedure, Authority delegations, 

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

taxes, Labeling, Packaging and containers, Penalties, Reporting 

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



27 CFR Part 275



    Administrative practice and procedure, Authority delegations, 

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

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

and containers, Penalties, Reporting requirements, Seizures and 

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

Warehouses.



27 CFR Part 290



    Administrative practice and procedure, Aircraft, Authority 

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

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

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

Vessels, Warehouses.



Authority and Issuance



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

follows:



PART 200--RULES OF PRACTICE IN PERMIT PROCEEDINGS



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

as follows:



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



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

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





Sec. 200.49b  Applications for tobacco permits.



* * * * *

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

manufacturing and activity requirements in 27 CFR 270.61; or

* * * * *



PART 270--MANUFACTURE OF TOBACCO PRODUCTS



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

follows:



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

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

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

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

9303, 9304, 9306.



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





Sec. 270.61  Qualification--General



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

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

a manufacturer of tobacco products in accordance with the provisions of 

this part.

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

manufacture tobacco products will only be granted to those persons 

whose principal business activity under such permit will be the 

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

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

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

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

products manufactured under the permit must exceed the quantity to be 

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

this section, repackaging or relabeling activities alone do not qualify 

as a manufacturing activity.

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





Sec. 270.183  Record of tobacco products.



    The record of a manufacturer of tobacco products shall show the 

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

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

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

    (a) Manufactured;

    (b) Received in bond by--

    (1) Transfer from other factories,

    (2) Release from customs custody,

    (3) Transfer from export warehouses, and

    (4) Transfer from foreign trade zone;

    (c) Received by return to bond;

    (d) Disclosed as an overage by inventory;

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

accordance with Sec. 270.22);

    (f) Removed, in bond, for--

    (1) Export,

    (2) Transfer to export warehouses,

    (3) Transfer to other factories,

    (4) Transfer to a foreign trade zone

    (5) Use of the United States, and

    (6) Experimental purposes off factory premises;



[[Page 71924]]



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

    (1) Consumption by employees on factory premises,

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

the number of employees to whom furnished,

    (3) Use for experimental purposes on factory premises,

    (4) Loss,

    (5) Destruction, and

    (6) Reduction to materials;

    (h) Disclosed as a shortage by inventory; and

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

    (1) Received, and

    (2) Disposed of.



(Approved by the Office of Management and Budget under control 

number 1512-0358)



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





Sec. 270.213  Tobacco products labeled for export.



    Tobacco products labeled for export are ineligible for removal from 

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

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

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

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

mean the removal of the tobacco product from its original package 

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

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

this subpart.

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

end of the section to read as follows:





Sec. 270.233  Transfer in bond.



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

manufacturer of tobacco products or to an export warehouse unless they 

bear all required marks, labels, or notices.



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

TUBES



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

follows:



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

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

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



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





Sec. 275.1  Importation of tobacco products and cigarette papers and 

tubes.



    This part contains regulations relating to tobacco products and 

cigarette papers and tubes imported into the United States from a 

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

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

tobacco products from a customs bonded manufacturing warehouse, class 

6; restrictions on the importation of previously exported tobacco 

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

products and cigarette papers and tubes from customs custody, without 

payment of internal revenue tax or customs duty attributable to the 

internal revenue tax.

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

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

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

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





Sec. 275.11  Meaning of terms.



* * * * *

    Export warehouse. A bonded internal revenue warehouse for the 

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

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

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

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

internal revenue laws of the United States.

    Export warehouse proprietor. Any person who operates an export 

warehouse.

    Manufacturer of tobacco products. Any person who manufactures 

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

tobacco. A manufacturer of tobacco products does not include:

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

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

personal consumption or use; or

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

respect to the operation of such warehouse.

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

cigarette papers or cigarette tubes, except for personal use or 

consumption.

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

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

as prescribed in this chapter, previously exported and returned within 

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

tobacco products, cigarette papers or tubes that are placed in 

appropriately marked receptacles by travelers or passengers prior to 

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

United States.

* * * * *

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

follows:





Sec. 275.81  Taxpayment.



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

products, cigarette papers, and cigarette tubes upon which internal 

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

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

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

For provisions relating to the importation of previously exported 

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

* * * * *

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

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





Sec. 275.82  Return of exported products.



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

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

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

papers and tubes that were previously exported from the United States 

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

United States by release from customs custody for delivery to a 

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

the proprietor of an export warehouse. These products are transferred 

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

part of the duty attributable to internal revenue tax.

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

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

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

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

removal of the tobacco product from its original package bearing the 

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

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

part 270.

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

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



[[Page 71925]]



Sec. 275.83  Penalties and forfeiture for relanded products.



    Except for the return of exported products that are specifically 

authorized under Sec. 275.82:

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

jurisdiction of the United States any tobacco products or cigarette 

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

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

products or cigarette papers or tubes; and,

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

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

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

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

tobacco products and cigarette papers and tubes relanded within the 

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

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

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

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

cigarette papers and tubes removed after December 31, 1999.



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

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



    Par. 14. The authority citation for part 290 is revised to read as 

follows:



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

5713, 5721-5723, 5731, 5741, 5751, 5754, 6061, 6065, 6151, 6402, 

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

9304, 9306.



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

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





Sec. 290.11  Meaning of terms.



* * * * *

    Zone restricted status. Tobacco products, cigarettes papers and 

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

United States Customs territory for the sole purpose of exportation or 

storage until exported.

* * * * *

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





Sec. 290.61  Removals, withdrawals, and shipments authorized.



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

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

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

for delivery for subsequent exportation, in accordance with the 

provisions of this part.

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

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

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





Sec. 290.61a  [Amended]



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

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

5200.14''.

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

of the section are amended to read as follows:





Sec. 290.62  Restriction on deliveries of tobacco products and 

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



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

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

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

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

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

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

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

Regulations (19 CFR part 122).

* * * * *

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





Sec. 290.142  Records.



    Every export warehouse proprietor must keep in such warehouse 

complete and concise records, containing the:

    (a) Number of containers;

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

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

    (d) Name of manufacturer and brand; and,

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

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

manufacturers or to customs warehouse proprietors. In addition to such 

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

Form 5200.14 received from a manufacturer, another export warehouse 

proprietor, or customs warehouse proprietor, from whom tobacco products 

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

5200.14 covering the tobacco products, and cigarette papers and tubes 

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

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

business day following that on which the transactions occur. No 

particular form of records is prescribed, but the information required 

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

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

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

available for inspection by any ATF officer upon request.



(Approved by the Office of Management and Budget under control 

number 1512-0367)





Sec. 290.143  [Amended]



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

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





Sec. 290.147  [Amended]



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

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





Sec. 290.152  [Amended]



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

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

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

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





Sec. 290.153  [Amended]



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

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

5620.8''.





Sec. 290.154  [Amended]



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

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

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

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

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





Sec. 290.181  Packages.



    All tobacco products and cigarette papers and tubes will, before 

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

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

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

the package does not include the cellophane wrapping material.





Sec. 290.198  [Amended]



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

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

``Form 5200.14''.



[[Page 71926]]



Sec. 290.199  [Amended]



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

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

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

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





Sec. 290.200  [Amended]



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

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

reference ``Form 5200.14''.





Sec. 290.201  [Amended]



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

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

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

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





Secs. 290.202 through 290.204  [Amended]



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

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

reference ``Form 5200.14''.





Sec. 290.205  [Amended]



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

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

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





Sec. 290.206  [Amended]



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

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

5200.14''.





Secs. 290.207 through 290.208  [Amended]



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

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

reference ``Form 5200.14''.





Sec. 290.210  [Amended]



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

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

5200.14''.





Sec. 290.213  [Amended]



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

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





Sec. 290.256  [Amended]



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

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





Sec. 290.257  [Amended]



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

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

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

place the words ``3 years''.





Secs. 290.258 through 290.265  [Amended]



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

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

place the reference ``Form 5200.14''.





Sec. 290.266  [Amended]



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

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

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

place the words ``3 years''.





Sec. 290.267  [Amended]



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

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

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

place the words ``3 years''.

    Signed: October 12, 1999.

John W. Magaw,

Director.



    Approved: November 17, 1999.

John P. Simpson,

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

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

BILLING CODE 4810-31-U