[Federal Register Volume 66, Number 84 (Tuesday, May 1, 2001)]
[Rules and Regulations]
[Pages 21667-21670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10673]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 250

[T.D. ATF-451]
RIN 1512-AC38


Delegation of Authority (2000R-415P)

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

ACTION: Treasury decision, final rule.

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SUMMARY: This final rule places ATF authorities contained in ATF 
regulations, with the ``appropriate ATF officer'' and requires that 
persons file documents required by ATF regulations, with the 
``appropriate ATF officer'' or in accordance with the instructions on 
the ATF form. Also, this final rule removes the definitions of, and 
references to, specific officers subordinate to the Director and the 
word ``region.'' Concurrently with this Treasury Decision, ATF Order 
1130.23 is being published. Through this order, the Director has 
delegated all of the authorities in ATF regulations to the appropriate 
ATF officers and specified the ATF officers with whom applications, 
notices and other reports, which are not ATF forms, are filed. In 
addition, this final rule makes a few corrections and provides an 
additional option for filing a statement of eligibility for flavors.

EFFECTIVE DATE: This rule is effective May 1, 2001.

FOR FURTHER INFORMATION CONTACT: Robert Ruhf, Regulations Division, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue NW, 
Room 5003, Washington, DC 20226 (telephone 202-927-8210 or e-mail to 
[email protected]).

SUPPLEMENTARY INFORMATION:

Background

    Pursuant to Treasury Order 120-01 (formerly 221), dated June 6, 
1972, the Secretary of the Treasury delegated to the Director of the 
Bureau of Alcohol, Tobacco and Firearms (ATF), the authority to 
enforce, among other laws, the provisions of chapter 51 of the Internal 
Revenue Code of 1986 (IRC) and the Federal Alcohol Administration (FAA) 
Act. The Director has subsequently redelegated certain of these 
authorities to appropriate subordinate officers by way of various 
means, including by regulation, ATF delegation orders, regional 
directives, or similar delegation documents. As a result, to ascertain 
what particular officer is authorized to perform a particular function 
under chapter 51 of the IRC or the FAA Act, 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 authorities of the 
Director in part 250 that were previously delegated and places those 
authorities with the ``appropriate ATF officer.'' All of the 
authorities of the Director that were not previously delegated are also 
placed with the ``appropriate ATF officer.'' Along with this final 
rule, ATF is publishing ATF Order 1130.23, Delegation Order--Delegation 
of the Director's Authorities in 27 CFR Part 250, Liquors and Articles 
from Puerto Rico and the Virgin Islands, which delegates certain of 
these authorities to the appropriate organizational level. The effect 
of these changes is to consolidate all delegations of authority in part 
250 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 
future. As a result, delegations of authority will be reflected in a 
more timely and user-friendly manner.
    In addition, this final rule also eliminates all references in the

[[Page 21668]]

regulations that identify the ATF officer with whom an ATF form is 
filed. This is because ATF forms will indicate the officer with whom 
they must be filed. Similarly, this final rule also amends part 250 to 
provide that the submission of documents other than ATF forms (such as 
letterhead applications, notices and reports) must be filed with the 
``appropriate ATF officer'' identified in ATF Order 1130.23. These 
changes will facilitate the identification of the officer with whom 
forms and other required submissions are filed.
    This final rule also makes various technical amendments to Subpart 
A--Scope of Regulations of 27 CFR part 250. First, a new Sec. 250.3 is 
added to recognize the authority of the Director to delegate regulatory 
authorities in part 250 and to identify ATF Order 1130.23 as the 
instrument reflecting such delegations. Second, Sec. 250.2 is amended 
to provide that the instructions for an ATF form identify the ATF 
officer with whom it must be filed.
    ATF has made or will make similar changes in delegations to all 
other parts of Title 27 of the Code of Federal Regulations through 
separate rulemakings. 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.

Miscellaneous Changes

    We have given an option to file ATF Form 5154.1 for persons who 
require a statement of eligibility for flavors to be used in the 
computation of the effective tax rate for distilled spirits. This ATF 
form may be used in lieu of the statement of composition prescribed by 
27 CFR 250.50a(b).

Corrections

    Two corrections have been made. First, we have corrected the text 
of Sec. 250.118 to insure that the district director is referenced in 
this entire section. Second, we have removed Sec. 250.277 which no 
longer applies because T.D. ATF-206 (50 FR 23949) eliminated the use 
and reports of strip stamps.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this final rule because there are no new or 
revised recordkeeping or reporting requirements.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for this rule, 
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
do not apply. A copy of this final rule was submitted to the Chief 
Counsel for Advocacy of the Small Business Administration in accordance 
with 26 U.S.C. 7805(f). No comments were received.

Executive Order 12866

    It has been determined that this rule is not a significant 
regulatory action because it will not: (1) Have an annual effect on the 
economy of $100 million or more or adversely affect in a material way 
the economy, a sector of the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
Executive Order 12866.

Administrative Procedure Act

    Because this final rule merely makes technical amendments and 
conforming changes to improve the clarity of the regulations, it is 
unnecessary to issue this final rule with notice and public procedure 
under 5 U.S.C. 553(b). Similarly it is unnecessary to subject this 
final rule to the effective date limitation of 5 U.S.C. 553(d).

Drafting Information

    The principal author of this document is Robert Ruhf, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 250

    Alcohol and alcoholic beverages, Administrative practice and 
procedure, Authority delegations (Government agencies), Beer, Claims, 
Customs duties and inspection, Electronic funds transfers, Excise 
taxes, Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Spices and flavorings, Surety bonds, 
Transportation, Warehouses, Wine.

Authority and Issuance

    Title 27, chapter I, Code of Federal Regulations is amended as 
follows:

PART 250--LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN 
ISLANDS

    Paragraph 1. The authority citation for part 250 continues to read 
as follows:

    Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 
5041, 5051, 5061, 5081, 5111, 5112, 5114, 5121, 5122, 5124, 5131-
5134, 5141, 5146, 5207, 5232, 5271, 5276, 5301, 5314, 5555, 6001, 
6301, 6302, 6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 
31 U.S.C. 9301, 9303, 9304, 9306.


Secs. 250.2, 250.11, 250.43, 250.209, 250.314, 250.316, 250.319 and 
250.331  [Amended]

    Par. 2. In part 250 remove the words ``Director'' each place it 
appears and add, in substitution, the words ``appropriate ATF officer'' 
in the following places:
    a. Section 250.2(a);
    b. The definition of ``Liquor bottle'' in Sec. 250.11;
    c. Section 250.43;
    d. Section 250.209;
    e. The first sentence of Sec. 250.314(b);
    f. Section 250.316;
    g. Section 250.319; and
    h. The third, fourth and last sentence of Sec. 250.331(b).
    Par. 3. Section 250.2 is further amended by adding a sentence at 
the end of paragraph (a) and revising paragraph (b) to read as follows:


Sec. 250.2  Forms prescribed.

    (a) * * * The form will be filed in accordance with the 
instructions for the form.
    (b) Forms may be requested from the ATF Distribution Center, P.O. 
Box 5950, Springfield, Virginia 22150-5950, or by accessing the ATF web 
site (http://www.atf.treas.gov/).

    Par. 4. In Subpart A--Scope of Regulations, a new Sec. 250.3 is 
added as follows:


Sec. 250.3  Delegations of the Director.

    All of the regulatory authorities of the Director contained in this 
part 250 are delegated to appropriate ATF officers. These ATF officers 
are specified in ATF Order 1130.23, Delegation Order--Delegation of the 
Director's Authorities in 27 CFR Part 250, Liquors and Articles from 
Puerto Rico and the Virgin Islands. ATF delegation orders, such as ATF 
Order 1130.23, are available to any interested person by mailing a 
request to the ATF Distribution Center, P.O. Box 5950, Springfield, 
Virginia 22150-5950, or by accessing the ATF web site 
(http://www.atf.treas.gov/).

    Par. 5. Section 250.11 is further amended by:
    a. Removing the definitions of ``ATF officer'', ``Chief, Puerto 
Rico Operations,

[[Page 21669]]

``Region'', ``Regional director (compliance), and ``United States 
Bureau of Alcohol, Tobacco and Firearms office''; and
    b. Adding a new definition of ``Appropriate ATF officer'' to read 
as follows:


Sec. 250.11  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 
1130.23, Delegation Order--Delegation of the Director's Authorities in 
27 CFR Part 250, Liquors and Articles from Puerto Rico and the Virgin 
Islands.
* * * * *

    Par. 6. Section 250.37 is revised to read as follows:


Sec. 250.37  United States Bureau of Alcohol, Tobacco and Firearms 
officers.

    Appropriate ATF officers are authorized to collect internal revenue 
taxes on liquors and articles subject to tax, which are to be shipped 
to the United States.

    Par. 7. Section 250.50a(b)(2) is revised to read as follows:


Sec. 250.50a  Verification of eligible flavors.

* * * * *
    (b) * * *
    (2) A statement of composition using ATF Form 5154.1 or a 
letterhead request that lists the--
    (i) Name and percentage of alcohol by volume of the flavor; and
    (ii) Name and quantity of each ingredient used in the manufacture 
of the flavor.
* * * * *


Secs. 250.52, 250.81, 250.96, 250.105, 250.110, 250.112, 250.112a, 
250.126 and 250.222  [Amended]

    Par. 8. Part 250 is amended by removing the words ``Chief, Puerto 
Rico Operations'' or ``Chief, Puerto Rican Operations,'' and adding, in 
substitution, the words ``appropriate ATF officer'' each place it 
appears in the following places:
    a. Section 250.52(b) and (c);
    b. Section 250.81;
    c. Section 250.96;
    d. Section 250.105;
    e. Section 250.110;
    f. Section 250.112(c)(1), (c)(4) and (e);
    g. Section 250.112a(c)(1);
    h. Section 250.126; and
    i. Section 250.222(b) and (c).

    Par. 9. Section 250.54 is revised to read as follows:


Sec. 250.54  Filing and disposition of formulas.

    Formulas required by this subpart must be submitted, and disposed 
of, in accordance with the instructions on the prescribed ATF form. The 
applicant shall maintain copies of approved formulas available for 
examination by revenue agents.

    Par. 10. Section 250.61 is revised to read as follows:


Sec. 250.61  General.

    Every person filing a bond under this subpart, or consent of surety 
on such bond, must file it in accordance with the instructions on the 
form.


Secs. 250.62a, 250.65, 250.70, 250.70a, 250.71, 250.72, 250.74, 250.75, 
250.112, 250.112a, 250.194, 250.276, 250.303 and 250.331  [Amended]

    Par. 11. Part 250 is further amended by removing the words 
``regional director (compliance)'' each place they appear and adding, 
in substitution, the words ``appropriate ATF officer'' in the following 
places:
    a. Section 250.62a;
    b. Section 250.65;
    c. Section 250.70;
    d. Section 250.70a;
    e. Section 250.71(c) and (d);
    f. Section 250.72;
    g. Section 250.74;
    h. Section 250.75;
    i. Section 250.112(e);
    j. Section 250.112a(b)(3);
    k. Section 250.194;
    l. The first and second sentence of Sec. 250.276;
    m. Section 250.303; and
    n. The first and second sentence of Sec. 250.331(b).

    Par. 12. Section 250.112(c)(3) is revised to read as follows:


Sec. 250.112  Returns for semimonthly periods.

    (c) Filing. * * *
    (3) The remittance may be in any form that is authorized to be 
accepted under the provisions of Sec. 70.61 of this chapter.
* * * * *


Sec. 250.112a  [Amended]

    Par. 13. The first sentence of Sec. 250.112a(b)(1) is amended by 
removing the words ``regional director (compliance), for each region in 
which taxes are paid'' and adding in substitution the words 
``appropriate ATF officer''.


Sec. 250.113  [Amended]

    Par. 14. Section 250.113(a) is amended by removing the words ``on 
file with the Chief, Puerto Rico Operations''.


Secs. 250.116, 250.174 and 250.310  [Amended]

    Par. 15. Part 250 is further amended by inserting the word 
``appropriate'' before the words ``ATF officer'' or ``ATF officers'' 
each place they appear in the following places:
    a. The second to the last sentence of Sec. 250.116;
    b. Section 250.174(a) and (e); and
    c. Section 250.310(a) and (e).

    Par. 16. The second to the last sentence in Sec. 250.118 is amended 
by removing the word ``director'' and adding in substitution the words 
``district director of customs''.

    Par. 17. Section 250.119 is revised to read as follows:


Sec. 250.119  Disposition of forms by district director of customs.

    Two copies of the Form 487B will be forwarded to the appropriate 
ATF officer, and one copy of the form will be retained by the district 
director of customs and be available for inspection by appropriate ATF 
officers.

    Par. 18. The second and third sentences of Sec. 250.128 are revised 
to read as follows:


Sec. 250.128  Taxpayment at port of arrival.

    * * *The tax may be paid to an appropriate ATF officer, and an ATF 
receipt obtained, or the tax may be paid to the director of customs, 
who will issue a customs receipt. If payment is to be made to an 
appropriate ATF officer, the director of customs will notify the 
appropriate ATF officer of the amount of tax due. * * *

    Par 19. Section 250.172 is amended: a. In paragraph (a) by removing 
the preceding comma and the words ``but references therein to a 
regional director (compliance) shall apply, for purposes of this part, 
to the Chief, Puerto Rico Operations'';
    b. By revising paragraph (b) to read as follows:


Sec. 250.172  Bonds.

* * * * *
    (b) Approval required. No person bringing eligible articles into 
the United States from Puerto Rico may file monthly claims for drawback 
under the provisions of this subpart until a bond on ATF Form 5154.3 
has been approved.

    Par. 20. Section 250.173 is amended by:
    a. Revising paragraph (a) to read as set forth below; and
    b. Removing the phrase ``with the Chief, Puerto Rico Operations,'' 
from the first sentence of paragraph (d).

[[Page 21670]]

Sec. 250.173  Claims for drawback.

    (a) General. Persons bringing eligible articles into the United 
States from Puerto Rico must file claim for drawback on ATF Form 2635 
(5620.8). Upon finding that the claimant has satisfied the requirements 
of this subpart, the appropriate ATF officer must allow the drawback of 
taxes at a rate of $1 less than the lesser of $10.50 a proof gallon or 
the rate specified in 26 U.S.C. 5001(a).
* * * * *


Sec. 250.193  [Amended]

    Par. 21. The last sentence of Sec. 250.193(b) is amended by 
removing the phrase ``regional director (compliance) of the consignee's 
region'' and adding, in substitution, the words ``appropriate ATF 
officer''.


Sec. 250.197  [Amended]

    Par. 22. Section 250.197 is amended by removing the phrase 
``regional director (compliance) of each region in which a consignee's 
distilled spirits plant is located'' and adding, in substitution, the 
words ``appropriate ATF officer''.

    Par. 23. Section 250.199f(c) is revised to read as follows:


Sec. 250.199f  Consignee premises.

* * * * *
    (c) Distribution of forms. The proprietor shall keep and send 
copies according the instructions on the form.
* * * * *

    Par. 24. Section 250.224 is revised to read as follows:


Sec. 250.224  Filing and disposition of formulas.

    Formulas required by this subpart must be submitted, and disposed 
of, in accordance with the instructions on the prescribed ATF form. The 
applicant shall maintain copies of approved formulas available for 
examination by insular agents.

    Par. 25. Section 250.275(a) is revised to read as follows:


Sec. 250.275  Filing.

    (a) All records and reports required by this part will be 
maintained separately, by transaction or reporting date, at the 
importer's place of business. The appropriate ATF officer may, pursuant 
to an application, authorize files, or an individual file, to be 
maintained at another business location under the control of the 
importer, if the alternative location does not cause undue 
inconvenience to appropriate ATF or Customs officers desiring to 
examine the files or delay in the timely submission of documents.
* * * * *

    Par. 26. The first sentence of Sec. 250.276 is revised to read as 
follows:


Sec. 250.276  Retention.

    All records required by this part, documents or copies of documents 
supporting these records, and file copies of reports required by this 
part shall be retained for not less than three years, and during this 
period shall be available, during business hours, for inspection and 
copying by appropriate ATF or customs officers. * * *

    Par. 27. The undesignated heading preceding Sec. 250.277 is 
removed.


Sec. 250.277  [Removed]

    Par. 28. Section 250.277 is removed and reserved.

    Par. 29. Section 250.308 is amended:
    a. By removing in paragraph (a) the preceding comma and the words 
``, but references therein to a regional director (compliance) shall 
apply, for purposes of this part to the Chief, Puerto Rico 
Operations''; and
    b. By revising paragraph (b) to read as follows:


Sec. 250.308  Bonds.

* * * * *
    (b) Approval required. No person bringing eligible articles into 
the United States from the Virgin Islands may file monthly claims for 
drawback under the provisions of this subpart until a bond on ATF Form 
5154.3 has been approved.

    Par. 30. Section 250.309 is amended by:
    a. Revising paragraph (a) to read as set forth below; and
    b. Removing the phrase ``with the Chief, Puerto Rico Operations,'' 
from the first sentence of paragraph (d).


Sec. 250.309  Claims for drawback.

    (a) General. Persons bringing eligible articles into the United 
States from the Virgin Islands must file claim for drawback on ATF Form 
2635 (5620.8). Upon finding that the claimant has satisfied the 
requirements of this subpart, the appropriate ATF officer must allow 
the drawback of taxes at a rate of $1 less than the lesser of $10.50 a 
proof gallon or the rate specified in 26 U.S.C. 5001(a).
* * * * *


Sec. 250.314  [Amended]

    Par. 31. Section 250.314 is amended by:
    a. Removing the phrase ``to the Director'' in the second sentence 
in paragraph (a).
    b. Removing the phrase ``from the Director'' in the third sentence 
in paragraph (a).
    c. Removing the word ``Director's'' and adding, in substitution, 
the words ``appropriate ATF officer's'' in the third sentence in 
paragraph (b).

    Par. 32. Section 250.318 is revised to read as follows:


Sec. 250.318  Liquor bottles denied entry.

    Filled liquor bottles not conforming to the provisions of this 
subpart shall be denied entry into the United States: Provided, That, 
upon letterhead application, in triplicate, the appropriate ATF officer 
may, in nonrecurring cases, authorize the release from customs custody 
of distilled spirits in bottles, except those coming under the 
provisions of Sec. 250.316, which, through unintentional error, do not 
conform to the provisions of this subpart, if such officer finds that 
such release will not afford jeopardy to the revenue.


Sec. 250.331  [Amended]

    Par. 33. Section 250.331 is further amended by:
    a. Removing from the first sentence of paragraph (a) the words 
``regional director (compliance) of the region in which his place of 
business is located'' and adding, in substitution, the words 
``appropriate ATF officer''.
    b. Removing the second sentence of paragraph (b).

    Signed: March 14, 2001.
Bradley A. Buckles,
Director.
    Approved: March 28, 2001.
Timothy E. Skud,
Acting Deputy Assistant Secretary (Regulatory, Tariff and Trade 
Enforcement).
[FR Doc. 01-10673 Filed 4-30-01; 8:45 am]
BILLING CODE 4810-31-P