[Federal Register Volume 68, Number 185 (Wednesday, September 24, 2003)]
[Proposed Rules]
[Pages 55281-55283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-23886]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 68, No. 185 / Wednesday, September 24, 2003 / 
Proposed Rules  

[[Page 55281]]



DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 252

[TTB Notice No. 16]
RIN 1513-AA78


Evidence of Exportation for Distilled Spirits; Use of Alternative 
Documentation (2002R-045P)

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to amend 
its regulations listing the documents that provide adequate evidence of 
export for shipments of distilled spirits. We also propose to require 
submission of these documents within a specific 90-day timeframe. This 
action is being taken to clarify the existing regulations as to the 
types of acceptable documentation and to inform the public that the 
Bureau will consider the approval of alternative types of documentation 
as adequate export evidence.

DATES: Written comments must be received by November 24, 2003.

ADDRESSES: Send written comments to: Chief, Regulations and Procedures 
Division, Alcohol and Tobacco Tax and Trade Bureau, P.O. Box 50221, 
Washington, DC 20091-0221 (Attn: TTB Notice No. 16). See the ``Public 
Participation'' section of this notice for alternative means of 
commenting.
    Copies of the proposed regulation, background materials, and any 
written comments received will be available for public inspection by 
appointment at the ATF Reference Library, Room 6480, 650 Massachusetts 
Avenue, NW., Washington, DC 20226; telephone 202-927-7890. You may also 
view online copies of this proposed regulation and any comments 
received regarding it under this notice number at http://www.ttb.gov/alcohol/rules/index/htm.

FOR FURTHER INFORMATION CONTACT: Joanne Brady, Specialist, Regulations 
and Procedures Division (Philadelphia, PA), Alcohol and Tobacco Tax and 
Trade Bureau, P.O. Box 45797, Philadelphia, PA 19149; telephone 215-
333-7050 or e-mail [email protected].

SUPPLEMENTARY INFORMATION:

Impact of the Homeland Security Act on Rulemaking

    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. Regulation of distilled 
spirits, including evidence of exportation, is the responsibility of 
the new TTB. References to ATF in this document relate to events that 
occurred prior to January 24, 2003, or to functions that the Bureau of 
Alcohol, Tobacco, Firearms and Explosives continues to perform.

Background

    Under the provisions of the Internal Revenue Code at 26 U.S.C. 
5214, distilled spirits can be withdrawn from bonded premises for 
exportation, free of tax or without payment of tax, subject to 
regulations prescribed by the Secretary of the Treasury. To help carry 
out these statutory provisions, the Alcohol and Tobacco Tax and Trade 
Bureau (TTB) has issued regulations which list several types of 
evidence that a proprietor can submit as adequate proof of export for 
shipments of distilled spirits. The proprietor is relieved of the tax 
liability at the time the distilled spirits are exported to a foreign 
or export destination, provided the proper evidence of exportation is 
submitted to TTB in a timely manner.

The Proposal

    We propose to amend 27 CFR part 252, Exportation of Liquors, in 
order to clarify the existing regulations regarding evidence of 
exportation for shipments of distilled spirits. A new section, 27 CFR 
252.39, clarifies the types of documentation that TTB will accept as 
adequate proof of export for shipments of distilled spirits. This new 
section will also require the documentation to be submitted within 90 
days of the date of withdrawal of the distilled spirits.
    We are taking this action regarding the submission of export 
documents for distilled spirits at the recommendation of the Office of 
the Inspector General. TTB's current internal processing procedures are 
directed by order TTB O 5020.8A. According to this order, it is our 
policy that exporters submit adequate proof of exportation within 90 
days. An extension may be granted due to just cause. It is critical 
that TTB act promptly in tax assessment matters.
    The tobacco export regulations at 27 CFR part 44 require that 
export evidence be furnished within 90 days of the date of removal of 
the tobacco products, or cigarette papers or tubes. In order to 
maintain consistency in TTB's internal processing procedures, we 
propose to apply the 90-day requirement to shipments of distilled 
spirits. We consider this time period to be a reasonable time for 
exporters to obtain and submit documentation to us in support of an 
export shipment. This period may be extended for just cause. At this 
time we are concentrating on revising the regulations for exporters of 
distilled spirits only. We will also be developing updated procedures 
for the beer and wine industries in the future.
    We propose to revise 27 CFR 252.40 to reflect a change in the 
section heading. We also propose to add 27 CFR 252.44 to clarify and 
remind the industry of the opportunity to submit alternative types of 
documentation as adequate proof of export, provided such documentation 
is:
    [sbull] Complete and accurate;
    [sbull] Third-party verifiable; and
    [sbull] Contains the same information required in an export bill of 
lading as outlined in 27 CFR 252.250.
    In addition, we propose to add two new sections, 27 CFR 252.254 and 
252.255, addressing certification of form TTB F 5100.11 by U.S. Customs 
Service and certificates of receipt issued by officials of foreign 
countries, both of which qualify as evidence of exportation.
    TTB believes these additions and changes to the regulations will 
provide the public with a better understanding of its export 
documentation requirements, while allowing the industry the opportunity 
to submit alternative documents for approval.

[[Page 55282]]

Public Participation

    TTB requests comments from all interested parties on the proposals 
contained in this notice. We specifically request comments on the 
clarity of this proposed rule and how it may be made easier to 
understand.

What Is a Comment?

    In order for a submission to be considered a ``comment,'' it must 
clearly indicate a position for or against the proposed rule or some 
part of it, or express neutrality about the proposed rule. Comments 
that use reasoning, logic, and, if applicable, good science to explain 
the commenter's position are the most persuasive in the formation of a 
final rule.
    To be eligible for consideration, comments must:
    [sbull] Contain your name and mailing address;
    [sbull] Reference this notice number;
    [sbull] Be legible and written in language generally acceptable for 
public disclosure;
    [sbull] Contain a legible, written signature if submitted by mail 
or fax; and
    [sbull] Contain your e-mail address if submitted by e-mail.
    To assure public access to our office equipment, comments submitted 
by fax must be no more than five pages in length when printed on 8\1/2\ 
x 11'' paper. Comments submitted by U.S. mail or e-mail may be of any 
length.

How May I Submit Comments?

    By Mail: You may send written comments by U.S. mail to the address 
shown above in the ADDRESSES section of this notice.
    By Fax: You may submit comments by facsimile transmission to 215-
333-8871. We will treat faxed transmissions as originals.
    By E-Mail: You may submit comments by e-mail by sending the 
comments to [email protected]. We will treat e-mail transmissions as 
originals.
    By On-line Form: You may also submit comments using the comment 
form provided with the online copy of this proposed rule on the TTB 
Internet Web site at http://www.ttb.treas.gov/. We will treat comments 
submitted via the Web site as originals.

How Does TTB Use the Comments?

    We will carefully consider all comments we receive on or before the 
closing date. We will not acknowledge receipt of comments or reply to 
individual comments. We will summarize and discuss pertinent comments 
in the preamble to any subsequent notices or the final rule published 
as a result of the comments.

May I Review Comments Received?

    You may view copies of the comments on this notice of proposed rule 
making by appointment at the ATF Reference Library, Room 6480, 650 
Massachusetts Avenue, NW., Washington, DC 20226, telephone (202) 927-
7890. You may also request copies of comments (at 20 cents per page) by 
contacting the ATF Librarian at the above address.
    For the convenience of the public, TTB will post comments received 
in response to this notice on the TTB web site. All comments posted on 
our web site will show the name of the commenter, but will not show 
street addresses, telephone numbers, or e-mail addresses. We may also 
omit voluminous attachments or material that we do not consider 
suitable for posting. In all cases, the full comment will be available 
in the ATF library as noted above. To access online copies of the 
comments on this rulemaking, visit http://www.ttb.treas.gov/alcohol/rules/index.htm, and click on the ``View comments'' button under this 
notice number.

Will TTB Keep My Comments Confidential?

    TTB cannot recognize any material in comments as confidential. All 
comments and materials may be disclosed to the public in the ATF 
library. We may also post the comment on our web site. (See ``May I 
Review Comments Received?'') Finally, we may disclose the name of any 
person who submits a comment and quote from the comment in the preamble 
to a final rule on this subject. If you consider your material to be 
confidential or inappropriate for disclosure to the public, you should 
not include it in your comments.

Regulatory Analyses and Notices

Does the Paperwork Reduction Act Apply to This Proposed Rule?

    The provisions of 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 notice because no new requirement to collect information 
is proposed.

How Does the Regulatory Flexibility Act Apply to This Proposed Rule?

    TTB certifies that this proposed regulation would not have a 
significant economic impact on a substantial number of small entities. 
We expect no negative impact on small entities. We are not proposing 
new requirements. Accordingly, the Act does not require a regulatory 
flexibility analysis.

Is This a Significant Regulatory Action as Defined by Executive Order 
12866?

    This is not a significant regulatory action as defined by Executive 
Order 12866. Therefore, the order does not require a regulatory 
assessment.

Drafting Information

    The principal author of this document is Joanne Brady, Regulations 
and Procedures Division, Alcohol and Tobacco Tax and Trade Bureau.

List of Subjects in 27 CFR Part 252

    Aircraft, Alcohol and alcoholic beverages, Armed forces, Beer 
claims, Excise taxes, Exports, Foreign trade zones, Labeling, Liquors, 
Packaging and containers, Reporting and recordkeeping requirements, 
Surety bonds, Vessels, Warehouses, Wine.

Authority and Issuance

    For the reasons set forth in the preamble, TTB proposes to amend 27 
CFR part 252 as follows:

PART 252--EXPORTATION OF LIQUORS

    1. The authority citation for part 252 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 
5007, 5008, 5041, 5051, 5054, 5061, 5111, 5112, 5114, 5121, 5122, 
5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805; 27 
U.S.C. 203, 205; 44 U.S.C. 3504(h).

Subpart C--Miscellaneous Provisions

    2. Section 252.39 is added to read as follows:


Sec.  252.39  Filing of evidence of exportation for distilled spirits.

    (a) Required evidence of exportation. You must provide acceptable 
export evidence that covers the transportation of the specified 
shipments of distilled spirits from your plant to the foreign or export 
destination. This evidence must be accurate and complete and verified 
by the signature of an authorized individual. We accept the following 
documents as proof of exportation:
    (1) A copy of an export bill of lading, such as an ocean bill of 
lading, signed by the carrier or its agent (Sec.  252.250); or
    (2) A copy of the railway express receipt (Sec.  252.251), signed 
by the carrier or its agent, containing the same information required 
in an export bill of lading (Sec.  252.250); or
    (3) A copy of the air express receipt (Sec.  252.252), signed by 
the carrier or its agent, containing the same information

[[Page 55283]]

required in an export bill of lading (Sec.  252.250); or
    (4) A copy of the through bill of lading, signed by the carrier or 
its agent, where exportation is to a contiguous foreign country (Sec.  
252.250); or
    (5) A certificate from the export carrier or its agent, showing 
actual exportation, when a bill of lading is required and not 
obtainable, executed under the penalties of perjury, as provided for in 
Sec.  252.253. It must contain the same information required in an 
export bill of lading (Sec.  252.250); or
    (6) U.S. Customs certification on TTB F 5100.11, or a certificate 
of receipt as provided for in Sec.  252.254; or
    (7) A certificate of receipt issued by an official of the country 
or possession where the shipment of distilled spirits has actually 
landed, as provided for in Sec.  252.255.
    (b) Time period for filing evidence. You must submit the evidence 
of exportation of any shipment of distilled spirits to the appropriate 
TTB officer within 90 days of the date of withdrawal and removal of the 
distilled spirits from the premises of the distilled spirits plant 
covered by the bond of the proprietor. The appropriate TTB officer may 
grant an extension in cases where just cause is shown.
    3. The heading of Sec.  252.40 is revised to read as set forth 
below:


Sec.  252.40  Filing of evidence of exportation for wine.

* * * * *
    4. Section 252.44 is added to read as follows:


Sec.  252.44  Alternative documentation.

    We may approve alternative types of documentation, upon letterhead 
request, provided such documentation is complete and accurate, third 
party verifiable, and contains the same information required in an 
export bill of lading (Sec.  252.250). You must follow the procedures 
in Sec.  252.20 if you wish to request approval for use of alternative 
types of documentation.

Subpart M--Shipment or Delivery for Export

    5. Section 252.254 is added as follows:


Sec.  252.254  Certification on withdrawal of spirits, specially 
denatured spirits, or wines for exportation, TTB F 5100.11.

    To use TTB F 5100.11 as proof of export you must obtain 
certification by U.S. Customs Service in Part VII, Certificate of 
Clearance or Use, of the form. A signed certificate of receipt from 
U.S. Customs Service is also acceptable, if it contains the same 
information required in an export bill of lading (Sec.  252.250).
    6. Section 252.255 is added as follows:


Sec.  252.255  Certificate by foreign official.

    TTB will accept an appropriate certification from a foreign 
official as proof of export. If you use this proof, you must provide a 
signed certificate of receipt by an authorized official of a foreign 
country or possession verifying actual exportation. The certificate 
must contain sufficient information to identify the shipment and the 
TTB F 5100.11 covering the shipment.

    Signed: August 8, 2003.
Arthur J. Libertucci,
Administrator.
    Approved: August 8, 2003.
Timothy E. Skud,
Deputy Assistant Secretary, Regulatory, Tariff & Trade Enforcement.
[FR Doc. 03-23886 Filed 9-23-03; 8:45 am]
BILLING CODE 4810-13-P