[Federal Register Volume 66, Number 189 (Friday, September 28, 2001)]
[Rules and Regulations]
[Pages 49531-49533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24052]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Parts 40, 44, 275 and 295

[T.D. ATF--467]
RIN 1512-AC55


Implementation of Public Law 106-544 for Certain Amendments 
Related to Balanced Budget Act of 1997 (2001R-9OT)

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

ACTION: Final Rule (Treasury Decision).

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SUMMARY: This document implements regulations relating to certain 
provisions of the Consolidated Appropriations Act, 2001, Public Law 
106-554. These provisions revised the definition of ``manufacturer of 
cigarette papers and tubes'' and removed the definition of ``cigarette 
papers'' in section 5702 of Title 26 of the United States Code. The 
provisions of these sections are retroactive to the effective date of 
section 9302 of the Balanced Budget Act of 1997, which was January 1, 
2000.

EFFECTIVE DATE: January 1, 2000.

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

SUPPLEMENTARY INFORMATION: On December 21, 2000, the President signed 
the Consolidated Appropriations Act, 2001, Public Law 106-554 (114 
Stat. 2763), which contains the Community Renewal Tax Relief Act 
(referred to as the Act). As noted in the accompanying Conference 
Report, sections 315(a)(2)(A) and (B) of the Act, contained in Title 
III--Administrative and Technical Provisions, were conforming 
amendments to reflect the fact that the tax on cigarette papers has not 
been imposed on ``books'' or papers since January 1, 2000. See 146 
Cong. Rec. H 12418 (daily ed. December 15, 2000). Section 315(b) of the 
Act made the effective date of the provisions of section 315 
retroactive to the effective date of section 9302 of the Balanced 
Budget Act of 1997, January 1, 2000 (111 Stat. 672).
    The provisions of section 315(a)(2)(A) revised the definition of 
manufacturer of cigarette papers and tubes. Prior to this revision, the 
definition of manufacturer of cigarette papers and tubes meant any 
person who makes up cigarette paper into books or sets containing more 
than 25 papers each, or into tubes, except for personal use or 
consumption. Section 315(a)(2)(A) amended the definition to mean ``any 
person who manufactures cigarette paper, or makes up cigarette paper 
into tubes, except for his own personal use or consumption.'' This 
definition was amended because section 9302 of the Balanced Budget Act 
of 1997 changed the imposition of the Federal excise tax on cigarette 
papers under section 5701(c) of Title 26 of the United States Code. 
Under section 5701(c), a tax now is imposed on all cigarette papers 
manufactured in the United States regardless of whether the cigarette 
papers were in books or sets containing more than 25 papers each. 
Consequently, the definition of manufacturer of cigarette papers and 
tubes was changed to conform to the Federal excise tax imposed on 
cigarette papers.
    The provisions of section 315(a)(2)(B) removed the definition of 
cigarette papers in 26 U.S.C. 5702. Prior to this amendment, the 
definition of cigarette papers meant taxable books or sets of cigarette 
papers. Because section 5701 of Title 26 of the United States Code 
imposes a tax on all cigarette papers, regardless of whether the 
cigarette papers are in books or sets, the definition of cigarette 
papers was deleted.
    In this final rule, we are amending the regulations in 27 CFR parts 
40, 44, 275 and 295 to conform to the changes made by the 
aforementioned provisions. Consequently, we are revising the regulatory 
definition of ``manufacturer of cigarette papers and tubes'' and 
removing the definition of ``cigarette papers''.

[[Page 49532]]

Administrative Procedure Act

    This document merely revises existing regulations to restate the 
language as currently set forth in the statute. Therefore, we find it 
is unnecessary to issue this Treasury decision with notice and public 
procedure under 5 U.S.C. 553(b), or subject to the effective date 
limitation in section 553(d).

Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to a 
final regulatory flexibility analysis (5 U.S.C. 604) do not apply to 
this final rule. We were not required to publish a general notice of 
proposed rulemaking under 5 U.S.C. 553 or any other law. The revenue 
effects of this rulemaking on small businesses result directly from the 
underlying statute. Pursuant to 26 U.S.C. 7805(f), we have sent a copy 
of this regulation to the Chief Counsel for Advocacy of the Small 
Business Administration for comment on its impact on small businesses. 
No comments were received.

Executive Order 12866

    It has been determined that this final rule is not a significant 
regulatory action as defined by Executive Order 12866. Therefore, a 
regulatory assessment is not required.

Paperwork Reduction Act of 1995

    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.

Drafting Information

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

List of Subjects

27 CFR Part 40

    Administrative practice and procedure, Authority delegations, 
Cigars and cigarettes, Claims, Electronic fund transfers, Excise taxes, 
Imports, Labeling, Packaging and containers, Penalties, Reporting and 
recordkeeping requirements, Seizures and forfeitures, Surety bonds, 
Tobacco.

27 CFR Part 44

    Administrative practice and procedure, Authority delegations, 
Cigars and cigarettes, Claims, Customs duties and inspections, Excise 
taxes, Exports, Foreign trade zones, Labeling, Packaging and 
containers, Penalties, Reporting and recordkeeping requirements, Surety 
bonds, Tobacco, Transportation, Warehouses.

27 CFR Part 275

    Administrative practice and procedure, Authority delegations, 
Cigars and cigarettes, Claims, Electronic fund transfer, Excise taxes, 
Imports, Labeling, Packaging and containers, Penalties, Reporting 
requirements, Seizures and forfeitures, Surety bonds, Tobacco, 
Warehouses.

27 CFR Part 295

    Administrative practice and procedure, Authority delegations, 
Cigars and cigarettes, Excise taxes, Labeling, Packaging and 
containers, Reporting and recordkeeping requirements, Tobacco.

Issuance

    27 CFR chapter I is amended as follows:

PART 40--[AMENDED]

    Paragraph 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.


    Par. 2. Section 40.11 is amended to:
    a. Remove the definition of ``cigarette papers''; and
    b. Revise the definition of ``manufacturer of cigarette papers and 
tubes'' to read as follows:


Sec. 40.11  Meaning of terms.

* * * * *
    Manufacturer of cigarette papers and tubes. Any person who 
manufactures cigarette paper, or makes up cigarette paper into tubes, 
except for his own personal use or consumption.
* * * * *

    Par. 3. Section 40.391 is revised to read as follows:


Sec. 40.391  Persons required to qualify.

    Every person who manufactures cigarette paper, or makes up 
cigarette paper into tubes, except for his own personal use or 
consumption, must first qualify as a manufacturer of cigarette papers 
and tubes in accordance with the provisions of this subpart.

PART 44--[AMENDED]

    Par. 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.


    Par. 5. Section 44.11 is amended to: a. Remove the definition of 
``cigarette papers''; and
    b. Revise the definition of ``manufacturer of cigarette papers and 
tubes'' to read as follows:


Sec. 44.11  Meaning of terms.

* * * * *
    Manufacturer of cigarette papers and tubes. Any person who 
manufactures cigarette paper, or makes up cigarette paper into tubes, 
except for his own personal use or consumption.
* * * * *

PART 275--[AMENDED]

    Par. 6. 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, 7652, 7805; 31 
U.S.C. 9301, 9303, 9304, 9306.


    Par. 7. Section 275.11 is amended to:
    a. Remove the definition of
    ``cigarette papers''; and
    b. Revise the definition of ``manufacturer of cigarette papers and 
tubes'' to read as follows:


Sec. 275.11  Meaning of terms.

* * * * *
    Manufacturer of cigarette papers and tubes. Any person who 
manufactures cigarette paper, or makes up cigarette paper into tubes, 
except for his own personal use or consumption.
* * * * *

PART 295--[AMENDED]

    Par. 8. The authority citation for 27 CFR part 295 continues to 
read as follows:

    Authority: 26 U.S.C. 5703, 5704, 5705, 5723, 5741, 5751, 5762, 
5763, 6313, 7212, 7342, 7606, 7805, 44 U.S.C. 3504(h).


    Par. 9. Section 295.11 is amended to:
    a. Remove the definition of ``cigarette papers''; and
    b. Revise the definition of ``manufacturer of cigarette papers and 
tubes'' to read as follows:

[[Page 49533]]

Sec. 295.11  Meaning of terms.

* * * * *
    Manufacturer of cigarette papers and tubes. Any person who 
manufactures cigarette paper, or makes up cigarette paper into tubes, 
except for his own personal use or consumption.
* * * * *

    Signed: July 17, 2001.
Bradley A. Buckles,
Director.
    Approved: August 23, 2001.
Timothy E. Skud,
Acting Deputy Assistant Secretary (Regulatory, Tariff and Trade 
Enforcement).
[FR Doc. 01-24052 Filed 9-27-01; 8:45 am]
BILLING CODE 4810-31-P