[Federal Register Volume 63, Number 23 (Wednesday, February 4, 1998)]
[Rules and Regulations]
[Pages 5727-5728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2681]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 53

[T.D. ATF-394]
RIN 1512-AB42


Manufacturers Excise Taxes--Firearms and Ammunition (95R-055P)

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

ACTION: Final rule (Treasury decision).

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SUMMARY: This final rule adopts without change temporary regulations 
published in the Federal Register on July 16, 1996. The temporary rule 
amended the regulations in 27 CFR part 53 that require exemption 
certificates or vendee statements in support of certain tax-free sales 
of firearms and ammunition. As amended by the temporary rule and this 
final rule, the regulations provide that taxpayers may use a preprinted 
document as an exemption certificate or vendee statement, or design 
their own certificate and statement using specified information. The 
regulatory amendments are part of the Administration's efforts to 
reduce regulatory burdens and streamline requirements.

EFFECTIVE DATE: April 6, 1998.

FOR FURTHER INFORMATION CONTACT: Marsha Baker, Regulations Branch, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Ave., NW, 
Washington, DC 20226; (202-927-8476).

SUPPLEMENTARY INFORMATION:

Background

    Chapter 32 of the Internal Revenue Code of 1986 imposes an excise 
tax on

[[Page 5728]]

the sale of firearms and ammunition by the manufacturer, producer, or 
importer thereof. 26 U.S.C. 4181. However, section 4221 of the Code 
sets forth certain purposes for which an article subject to tax under 
Chapter 32 may be sold tax-free by the manufacturer, producer, or 
importer.
    Under the regulations appearing in 27 CFR part 53, persons who sell 
firearms or ammunition tax-free are required to obtain certain 
exemption certificates or vendee statements to support such sales. 
Previous regulations included suggested forms for each type of 
statement and certificate. However, the Bureau of Alcohol, Tobacco and 
Firearms (ATF) has now made these certificates and statements available 
as preprinted documents that may be ordered by the taxpayer through the 
Bureau's Distribution Center and then reproduced as needed.

Temporary Rule and Notice of Proposed Rulemaking

    On July 16, 1996, ATF published in the Federal Register a temporary 
rule (T.D. ATF-380, 61 FR 37005) amending the regulations regarding 
exemption certificates and statements related to the tax-free sale of 
firearms and ammunition. The temporary rule provided that taxpayers had 
the option of either using a preprinted exemption certificate and 
statement available through the Bureau's Distribution Center or 
designing their own certificates and statements that reflected the 
information required by the regulations. Should taxpayers wish to 
design and use their own certificates or statements, the regulations 
explain what information is required on such documents.
    On July 16, 1996, the Bureau also published a notice of proposed 
rulemaking cross-referenced to the temporary regulations (Notice No. 
831, 61 FR 37022). The notice sought public comment on the changes made 
by the temporary rule. The comment period for Notice No. 831 closed on 
October 15, 1996.

Comments

    ATF received no comments in response to Notice No. 831.

Final Rule

    ATF is adopting without change the amendments published in the 
temporary rule, T.D. ATF-380. The amendments reduce regulatory burdens 
by making preprinted forms available to taxpayers, while still 
providing taxpayers the flexibility of creating their own certificates 
and statements to support tax-free sales.

Executive Order 12866

    It has been determined that this final rule is not a significant 
regulatory action as defined in E.O. 12866. Therefore, a regulatory 
assessment is not required.

Regulatory Flexibility Act

    Pursuant to section 7805(f) of the Internal Revenue Code, the 
notice of proposed rulemaking and the temporary rule preceding this 
regulation were submitted to the Chief Counsel for Advocacy of the 
Small Business Administration (SBA) for comment on any impact on small 
business. The SBA did not submit any comments.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, Pub. L. 104-
13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR part 
1320, do not apply to this final rule because no new requirement to 
collect information is imposed.

Disclosure

    Copies of the temporary rule, the notice of proposed rulemaking, 
and this final rule will be available for public inspection during 
normal business hours at: ATF Public Reading Room, Room 6480, 650 
Massachusetts Avenue, NW, Washington, DC 20226.

Drafting Information

    The authors of this document are Mary Lou Blake and Marsha D. 
Baker, Regulations Branch, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 53

    Administrative practice and procedure, Arms and munitions, 
Authority delegations, Exports, Imports, Penalties, Reporting and 
recordkeeping requirements.

PART 53--MANUFACTURERS EXCISE TAXES--FIREARMS AND AMMUNITION

    Accordingly, the temporary rule (TD ATF-380) amending 27 CFR part 
53 which was published at 61 FR 37005 on July 16, 1996, is adopted as a 
final rule without change.

    Signed: December 22, 1997.
John Magaw,
Director.
    Approved: January 13, 1998.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff & Trade Enforcement).
[FR Doc. 98-2681 Filed 2-3-98; 8:45 am]
BILLING CODE 4810-31-U