Importation of Tobacco Products and Cigarette Papers and Tubes; Recodification of Regulations; Administrative Changes Due to the Homeland Security Act of 2002 (2000R-546P)

AGENCY:

Alcohol and Tobacco Tax and Trade Bureau (TTB), Treasury.

ACTION:

Final rule; Treasury decision.

SUMMARY:

The Alcohol and Tobacco Tax and Trade Bureau (TTB) is recodifying its regulations pertaining to the importation of tobacco products and cigarette papers and tubes. We are also making administrative changes to these regulations to reflect TTB's new name and organizational structure resulting from changes made by the Homeland Security Act of 2002. This document does not include any substantive regulatory changes.

DATES:

This rule is effective on August 26, 2004.

FOR FURTHER INFORMATION CONTACT:

N. A. Sutton, Regulations and Procedures Division, Alcohol and Tobacco Tax and Trade Bureau, telephone 415-271-1254 or e-mail: nancy.sutton@ttb.gov.

SUPPLEMENTARY INFORMATION:

Background

As a part of its continuing efforts to reorganize chapter I of title 27 of the Code of Federal Regulations (27 CFR chapter I), the Alcohol and Tobacco Tax and Trade Bureau (TTB) is removing all of part 275, Importation of Tobacco Products and Cigarette Papers and Tubes, from subchapter M, Alcohol, Tobacco and Other Excise Taxes, and recodifying it as part 41 in subchapter B, Tobacco. This change merely improves the organization of chapter I of title 27. The table below shows from which section of part 275 the requirements of part 41 are derived.

In addition, section 1111 of the Homeland Security Act of 2002 (Public Law 107-296, 116 Stat. 2135) divided the Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury, into two separate agencies, the Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice, and TTB which remains in the Department of the Treasury. This reorganization requires us to amend each of the CFR parts under our jurisdiction to reflect our Bureau's new name and organizational structure. This document makes the appropriate administrative, nonsubstantive changes to the newly redesignated part 41.

Regulatory Flexibility Act

Because no notice of proposed rulemaking is required for this final rule under 5 U.S.C. 553, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply.

Executive Order 12866

This final rule is not a significant regulatory action as defined in Executive Order 12866. Accordingly, this final rule is not subject to the analysis requirement of this Executive Order.

Inapplicability of Prior Notice and Comment and Delayed Effective Date Requirements

Because this final rule merely makes organizational and technical or conforming nonsubstantive amendments to improve the layout of the regulations and to reflect the new name and organizational structure of TTB, no notice of proposed rulemaking and public comment period are required under 5 U.S.C. 553(b)(B). For the same reasons, this final rule is not subject to the delayed effective date requirement of 5 U.S.C. 553(d).

Drafting Information

The principal author of this document is N. A. Sutton, Regulations and Procedures Division, Alcohol and Tobacco Tax and Trade Bureau.

List of Subjects

27 CFR Part 40

• Cigars and cigarettes
• Claims
• Electronic funds transfers
• Excise taxes
• Imports
• Labeling
• Packaging and containers
• Reporting and recordkeeping requirements
• Surety bonds
• Tobacco

27 CFR Part 41

• Cigars and cigarettes
• Claims
• Customs duties and inspection
• Electronic funds transfers
• Excise taxes
• Imports
• Labeling
• Packaging and containers
• Puerto Rico
• Reporting and recordkeeping requirements
• Surety bonds
• Tobacco
• Virgin Islands
• Warehouses

27 CFR Part 44

• Aircraft
• Armed forces
• Cigars and cigarettes
• Claims
• Customs duties and inspection
• Excise taxes
• Exports
• Foreign trade zones
• Labeling
• Packaging and containers
• Reporting and recordkeeping requirements
• Surety bonds
• Tobacco
• Vessels
• Warehouses

27 CFR Part 45

• Cigars and cigarettes
• Excise taxes
• Labeling
• Packaging and containers
• Reporting and recordkeeping requirements
• Tobacco

27 CFR Part 46

• Cigars and cigarettes
• Claims
• Excise taxes
• Penalties
• Reporting and recordkeeping requirements
• Seizures and forfeitures
• Surety bonds
• Tobacco

27 CFR Part 70

• Administrative practice and procedure
• Claims
• Excise taxes
• Freedom of information
• Law enforcement
• Penalties
• Reporting and recordkeeping requirements
• Surety bonds

27 CFR Part 275

• Cigars and cigarettes
• Claims
• Customs duties and inspection
• Electronic funds transfers
• Excise taxes
• Imports
• Labeling
• Packaging and containers
• Puerto Rico
• Reporting and recordkeeping requirements
• Surety bonds
• Tobacco
• Virgin Islands
• Warehouses

Amendments to the Regulations

For the reasons stated in the preamble, TTB amends chapter 1 of title 27 of the Code of Federal Regulations as follows:

PART 40—MANUFACTURE OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

1. The authority citation for 27 CFR part 40 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.

2. Amend the first sentence of paragraphs (a)(1), (b)(1) and (b)(3) of § 40.165a by removing the reference to “parts 275 and 285” and adding, in its place, a reference to “part 41”.

3. Remove the reference to “part 275” and add, in its place, a reference to “part 41” in the following places:

a. Section 40.236;

b. Section 40.357 (a)(1), (b)(1), and (b)(3); and

c. Section 40.452.

PART 44—EXPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES, WITHOUT PAYMENT OF TAX, OR WITH DRAWBACK OF TAX

4. The authority citation for 27 CFR part 44 continues 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.

5. Amend the definition of “Sale price” in § 44.11 by removing the reference to “275.39” and adding, in its place, a reference to “41.39”.

PART 45—REMOVAL OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES, WITHOUT PAYMENT OF TAX, FOR USE OF THE UNITED STATES

6. The authority citation for 27 CFR part 45 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).

7. Amend the definition of “Sale price” in § 45.11 by removing the reference to “275.39” and adding, in its place, a reference to “41.39”.

PART 46—MISCELLANEOUS REGULATIONS RELATING TO TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

8. The authority citation for 27 CFR part 46 continues to read as follows:

Authority: 18 U.S.C. 2341-2346, 26 U.S.C. 5704, 5708, 5751, 5754, 5761-5763, 6001, 6601, 6621, 6622, 7212, 7342, 7602, 7606, 7805, 44 U.S.C. 3504(h), 49 U.S.C. 782, unless otherwise noted.

9. Amend the definition of “Sale price” in § 46.72 by removing the reference to “275.39” and adding, in its place, a reference to “41.39”.

10. Amend § 46.166 as follows:

a. In paragraph (a), first sentence, remove the reference to “parts 270 and 275” and add, in its place, a reference to “parts 40 and 41”.

b. In paragraph (c) remove the reference to “§ 275.83” and add, in its place, a reference to “§ 41.83.”

11. Amend § 46.167 by removing the reference to “parts 40 and 275” each place it appears, and add, in each place, a reference to “parts 40 and 41”.

12. Amend paragraph (d) of § 46.255 by removing the reference to “part 275” and adding, in its place, a reference to “part 41”.

PART 70—PROCEDURE AND ADMINISTRATION

13. The authority citation for 27 CFR part 70 continues to read as follows:

Authority: 5 U.S.C. 301 and 552; 26 U.S.C. 4181, 4182, 5146, 5203, 5207, 5275, 5367, 5415, 5504, 5555, 5684(a), 5741, 5761(b), 5802, 6020, 6021, 6064, 6102, 6155, 6159, 6201, 6203, 6204, 6301, 6303, 6311, 6313, 6314, 6321, 6323, 6325, 6326, 6331-6343, 6401-6404, 6407, 6416, 6423, 6501-6503, 6511, 6513, 6514, 6532, 6601, 6602, 6611, 6621, 6622, 6651, 6653, 6656-6658, 6665, 6671, 6672, 6701, 6723, 6801, 6862, 6863, 6901, 7011, 7101, 7102, 7121, 7122, 7207, 7209, 7214, 7304, 7401, 7403, 7406, 7423, 7424, 7425, 7426, 7429, 7430, 7432, 7502, 7503, 7505, 7506, 7513, 7601-7606, 7608-7610, 7622, 7623, 7653, 7805.

14. Amend § 70.431(b)(3) by removing the reference to “Part 275” and adding, in its place, a reference to “Part 41”.

15. Amend § 70.461 by removing the reference to “part 275” and adding, in its place, a reference to “part 41”.

PART 275—IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

16. The authority citation for 27 CFR part 275 continues to read as follows:

Authority: 18 U.S.C. 2342; 26 U.S.C. 5701, 5703, 5704, 5705, 5708, 5712, 5713, 5721, 5722, 5723, 5741, 5754, 5761, 5762, 5763, 6301, 6302, 6313, 6404, 7101, 7212, 7342, 7606, 7651, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

PART 275—[REDESIGNATED AS PART 41]

17. Transfer 27 CFR part 275 from chapter I, subchapter M, to chapter I, subchapter B, and redesignate as 27 CFR part 41.

PART 41—IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES

18. Revise the authority citation for the newly redesignated 27 CFR part 41 to read as follows:

Authority: 18 U.S.C. 2342; 26 U.S.C. 5701, 5703, 5704, 5705, 5708, 5712, 5713, 5721-5723, 5741, 5754, 5761-5763, 6301, 6302, 6313, 6404, 7101, 7212, 7342, 7606, 7651, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

19. Amend § 41.11 as follows:

a. Add, in alphabetical order, a definition of “Administrator” to read as set forth below:

b. Remove the definition of “Appropriate ATF officer” and add, in its place, the definition of “Appropriate TTB officer” to read as set forth below:

c. Remove the definitions of “Associate Director (Compliance Operations),” “ATF,” “ATF officer,” and “Chief, Puerto Rico Operations.”

d. In the definition of “Computation or computed” remove the reference to “an ATF officer” and add, in its place, a reference to “the appropriate TTB officer”.

e. Remove the definitions of “Director” and “District director.”

f. In paragraph (3)(v) of the definition of “Records” remove the reference to “ATF” each place it appears, and add, in each place, a reference to “TTB”.

g. Remove the definitions of “Region,” and “Regional Director (compliance).”

h. In the definition of “Sale price”, remove the reference to “§ 275.39” and add, in its place, a reference to “§ 41.39”.

The additions to §41.11 read as follows:

20. Amend § 41.21 as follows:

a. In paragraph (a) remove the word “Director” and add, in its place, the word “Administrator”.

b. Revise paragraph (b) to read as follows:

21. Amend the sections listed above as follows:

22. Revise § 41.29 to read as follows:

23. Amend the sections listed above as follows: