[Federal Register Volume 68, Number 140 (Tuesday, July 22, 2003)]
[Rules and Regulations]
[Pages 43294-43295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18564]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 40 and 275

[T.D. TTB-4; ATF Notice No. 962]
RIN 1513-AA18


Elimination of Statistical Classes for Large Cigars (2000R-410P)

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

ACTION: Final rule (Treasury Decision).

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SUMMARY: This final rule removes the eight statistical classes for 
large cigars prescribed in TTB regulations. Since tobacco manufacturers 
and importers no longer use these statistical classes to report 
removals of large cigars subject to tax, this final rule eliminates 
obsolete regulations.

DATES: The effective date of this final rule is August 21, 2003.

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

SUPPLEMENTARY INFORMATION:

ATF-TTB Transition

    Effective January 24, 2003, the Homeland Security Act of 2002 
divided the Bureau of Alcohol, Tobacco and Firearms (ATF) into two new 
agencies, the Alcohol and Tobacco Tax and Trade Bureau (TTB) in the 
Department of the Treasury and the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives in the Department of Justice. The taxation of 
tobacco products remains a Department of the Treasury function and is 
the responsibility of TTB. References to the former ATF and the new TTB 
in this document reflect the time frame, before or after January 24, 
2003.

Final Rule Background

    On November 5, 2002, ATF published a notice of proposed rulemaking 
in the Federal Register (ATF Notice No. 962, 67 FR 67340) to solicit 
comments about the elimination of obsolete tobacco regulations in 27 
CFR parts 40 and 275. These regulations prescribed eight statistical 
classes for large cigars subject to tax. The first seven classes 
(Classes A through G) covered large cigars selling for $235.294 or less 
per thousand, while the eighth class (Class H) covered those selling 
for more than $235.294 per thousand.
    Since January 1, 2001, manufacturers of tobacco products report 
information about large cigars subject to tax in two statistical 
classes. Tobacco importers also no longer use these eight statistical 
classes. The reduction in the number of statistical classes reduces 
industry's reporting burden, but does not jeopardize our ability to 
protect the revenue or adversely affect our compilation of tobacco 
statistics for use by governments and the public.
    We did not receive any comments on ATF Notice No. 962. For these 
reasons and those discussed in the notice, we are issuing this final 
rule.

Regulatory Requirements

Regulatory Flexibility Act

    We certify that this final rule will not have a significant 
economic impact on a substantial number of small entities. 
Consequently, the provisions of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.) do not apply. In accordance with 26 U.S.C. 7805(f), 
we sent the notice of proposed rulemaking to the Chief Counsel for 
Advocacy of the Small Business Administration.

Executive Order 12866

    We have determined that this rule is not a significant regulatory 
action as defined by Executive Order 12866.

[[Page 43295]]

Therefore, a regulatory assessment is not required.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35, and its 
implementing regulations, 5 CFR part 1320, do not apply to this final 
rule because it does not impose a collection of information.

Administrative Procedure Act

    In accordance with the provisions of 5 U.S.C. 553(d), we made the 
effective date of this final rule 30 days after its publication in the 
Federal Register.

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 275

    Administrative practice and procedure, Authority delegations, 
Cigarette papers and tubes, Claims, Electronic fund transfer, Customs 
duties and inspection, Excise taxes, Imports, Labeling, Packaging and 
containers, Penalties, Reporting requirements, Seizures and 
forfeitures, Surety bonds, Tobacco products, U.S. possessions, 
Warehouses.

Authority and Issuance

0
Title 27, Code of Federal Regulations, is amended as follows:

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

0
Paragraph 1. The authority citation for 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.


Sec.  40.203  [Removed and reserved]

0
Par. 2. Section 40.203 is removed and reserved.

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

0
Par 3. The authority citation for 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.


Sec.  275.37  [Removed and Reserved]

0
Par. 4. Section 275.37 is removed and reserved.

    Signed: April 11, 2003.
Arthur J. Libertucci,
Administrator.

    Approved: June 4, 2003.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
[FR Doc. 03-18564 Filed 7-21-03; 8:45 am]
BILLING CODE 4810-31-P