[Federal Register Volume 74, Number 60 (Tuesday, March 31, 2009)]
[Proposed Rules]
[Pages 14506-14508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-7076]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 40, 41, 44, 46, and 71

[Docket No. TTB-2009-0001; Notice No. 93; Re: T.D. TTB-75]
RIN 1513-AB70


Increase in Tax Rates on Tobacco Products and Cigarette Papers 
and Tubes; Floor Stocks Tax on Certain Tobacco Products, Cigarette 
Papers, and Cigarette Tubes; and Changes to Basis for Denial, 
Suspension, or Revocation of Permits (2009R-118P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Notice of proposed rulemaking; cross-reference to temporary 
rule.

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SUMMARY: Elsewhere in this issue of the Federal Register, the Alcohol 
and Tobacco Tax and Trade Bureau is issuing a temporary rule 
implementing certain provisions of the Children's Health Insurance 
Program Reauthorization Act of 2009 (CHIPRA). The text of the 
regulations in the temporary rule published in the Rules and 
Regulations section of this issue of the Federal Register serves as the 
text of the proposed regulations.

DATES: Comments must be received on or before June 1, 2009.

ADDRESSES: You may send comments on this notice to one of the following 
addresses:
     http://www.regulations.gov (via the online comment form 
for this notice as posted within Docket No. TTB-2009-0001 at 
``Regulations.gov,'' the Federal e-rulemaking portal);
     Director, Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412; or
     Hand Delivery/Courier in Lieu of Mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street, NW., Suite 200-E, Washington, DC 
20005.
    See the Public Participation section of this notice for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing.
    You may view copies of this notice, any comments received, and the 
related temporary rule at http://www.regulations.gov. A direct link to 
the appropriate Regulations.gov docket is also available under Notice 
No. 93 on the TTB Web site at http://www.ttb.gov/regulations_laws/all_rulemaking.shtml. You also may view copies of these documents by 
appointment at the TTB Information Resource Center, 1310 G Street, NW., 
Washington, DC 20220. To make an appointment, call 202-927-2400.

FOR FURTHER INFORMATION CONTACT: For questions concerning floor stocks 
tax, contact the National Revenue Center, Alcohol and Tobacco Tax and 
Trade Bureau ([email protected], 513-684-3334 or 1-877-TTB-FAQS 
(1-877-882-3277)); for other questions concerning this document, 
contact Amy Greenberg, Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau (202-927-8210).

SUPPLEMENTARY INFORMATION:

Background

    In the Rules and Regulations section of this issue of the Federal 
Register, we are publishing a temporary rule setting forth regulatory 
amendments to implement certain provisions of the Children's Health 
Insurance Program Reauthorization Act of 2009 (CHIPRA). The temporary 
rule amends the existing regulations to reflect increases in the tax 
rates on tobacco products and cigarette papers and tubes, revising 
existing floor stocks tax regulations to reflect the scope of the 
CHIPRA floor stocks tax provisions, and revising existing regulations 
to include the new statutory criteria for denial, suspension, or 
revocation of tobacco permits.
    The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible 
for the administration of the Internal Revenue Code of 1986 provisions 
relating to qualification of manufacturers of tobacco products and 
cigarette papers and tubes, importers of those products, and export 
warehouses for those products. TTB is also responsible for collecting 
the excise taxes on tobacco products and cigarette papers and tubes 
removed from domestic production facilities and brought to the United 
States from Puerto Rico. In addition, TTB is responsible for collecting 
the floor stocks tax imposed by CHIPRA on tobacco products (except 
large cigars) and cigarette papers and tubes held for sale on April 1, 
2009.
    The temporary regulations published elsewhere in this issue of the 
Federal Register involve amendments to parts 40, 41, 44, 46, and 71 of 
the TTB regulations (27 CFR parts 40, 41, 44, 46, and 71). The text of 
the temporary regulations serves as the text of these proposed 
regulations. The preamble to the temporary regulations explains the 
proposed regulations.

Public Participation

Comments Invited

    We invite comments from interested members of the public on this 
proposed rulemaking.

Submitting Comments

    You may submit comments on this notice by one of the following 
three methods:
     Federal e-Rulemaking Portal: You may electronically submit 
comments on this notice through ``Regulations.gov,'' the Federal e-
rulemaking portal. A direct link to the Regulations.gov docket 
containing this notice and its related comment submission form is 
available on the TTB Web site at http://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 93. You may also reach this 
notice and its related comment form via the Regulatons.gov search page 
at http://www.regulations.gov. Supplemental files may be attached to 
comments submitted via Regulations.gov. For complete instructions on 
how to use Regulations.gov, visit the site and click on ``User Guide'' 
under ``How to Use this Site.''
     Mail: You may send written comments to the Director, 
Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade 
Bureau, P.O. Box 14412, Washington, DC 20044-4412.
     Hand Delivery/Courier: You may hand-carry your comments or 
have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau, 
1310 G Street, NW., Suite 200-E, Washington, DC 20005.
    Please submit your comments by the closing date shown above in this 
notice. Your comments must reference Notice No. 93 and include your 
name and mailing address. Your comments also must be made in English, 
be legible, and be written in language acceptable for public 
disclosure. We do not

[[Page 14507]]

acknowledge receipt of comments, and we consider all comments as 
originals.
    If you are commenting on behalf of an association, business, or 
other entity, your comment must include the entity's name as well as 
your name and position title. If you comment via http://www.regulations.gov, please enter the entity's name in the 
``Organization'' blank of the comment form. If you comment via mail, 
please submit your entity's comment on letterhead.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine whether to hold a public hearing.

Confidentiality

    All submitted comments and attachments are part of the public 
record and subject to disclosure. Do not enclose any material in your 
comments that you consider to be confidential or inappropriate for 
public disclosure.

Public Disclosure

    On the Federal e-rulemaking portal, Regulations.gov, we will post, 
and you may view, copies of this notice, any electronic or mailed 
comments we receive about this proposal, and the related temporary 
rule. A direct link to the Regulations.gov docket containing this 
notice and the comments received on this proposal is available on the 
TTB Web site at http://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 93. You may also reach the relevant 
docket through the Regulatons.gov search page at http://www.regulations.gov.
    All posted comments will display the commenter's name, organization 
(if any), city, and State, and, in the case of mailed comments, all 
address information, including e-mail addresses. We may omit voluminous 
attachments or material that we consider unsuitable for posting.
    You also may view copies of this notice, any electronic or mailed 
comments we receive about this proposal, and the related temporary rule 
by appointment at the TTB Information Resource Center, 1310 G Street, 
NW., Washington, DC 20220. You may also obtain copies at 20 cents per 
8.5- x 11-inch page. Contact our information specialist at the above 
address or by telephone at 202-927-2400 to schedule an appointment or 
to request copies of comments or other materials.

Regulatory Flexibility Act, Paper Work Reduction Act, and Executive 
Order 12866

    Since the regulatory text proposed in this notice of proposed 
rulemaking is identical to that contained in the companion temporary 
rule published elsewhere in this issue of the Federal Register, the 
analyses contained in the preamble of the temporary rule concerning the 
Regulatory Flexibility Act, the Paperwork Reduction Act, and Executive 
Order 12866 also apply to this proposed rule.

Drafting Information

    Marjorie Ruhf of the Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, drafted this document. However, other 
personnel participated in its development.

List of Subjects

27 CFR Part 40

    Cigars and cigarettes, Claims, Electronic funds transfers, Excise 
taxes, Imports, Labeling, Packaging and containers, Reporting and 
recordkeeping requirements, Surety bonds, Tobacco.

27 CFR Part 41

    Cigars and cigarettes, Claims, Customs duties and inspection, 
Electronic funds transfers, Excise taxes, Imports, Labeling, Packaging 
and containers, Puerto Rico, Reporting and recordkeeping requirements, 
Surety bonds, Tobacco, Virgin Islands, Warehouses.

27 CFR Part 44

    Aircraft, Armed forces, Cigars and cigarettes, Claims, Customs 
duties and inspection, Excise taxes, Exports, Foreign trade zones, 
Labeling, Packaging and containers, Reporting and recordkeeping 
requirements, Surety bonds, Tobacco, Vessels, Warehouses.

27 CFR Part 46

    Administrative practice and procedure, Cigars and cigarettes, 
Claims, Excise taxes, Packaging and containers, Penalties, Reporting 
and recordkeeping requirements, Seizures and forfeitures, Surety bonds, 
Tobacco.

27 CFR Part 71

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Tobacco.

Proposed Amendments to the Regulations

    For the reasons discussed in the preamble, TTB proposes to amend 27 
CFR parts 40, 41, 44, 46, and 71 as follows:

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

    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.

    2. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 40 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

PART 41--IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND 
TUBES

    3. The authority citation for part 41 continues to read as follows:

    Authority:  18 U.S.C. 2342; 26 U.S.C. 5701, 5703, 5704, 5705, 
5708, 5712, 5713, 5721-5723, 5741, 5754, 5761-5763, 6301, 6302, 
6313, 6404, 7101, 7212, 7342, 7606, 7651, 7652, 7805; 31 U.S.C. 
9301, 9303, 9304, 9306.

    4. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 41 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

PART 44--EXPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND 
TUBES, WITHOUT PAYMENT OF TAX, OR WITH DRAWBACK OF TAX

    5. The authority citation for part 44 continues to read as follows:

    Authority:  26 U.S.C. 5142, 5143, 5146, 5701, 5703, 5704, 5708, 
5711-13, 5721-5723, 5731, 5741, 5751, 5754, 6066, 6065, 6151, 6402, 
6404, 6806, 7011, 7212, 7342, 7606, 7805; 31 U.S.C. 9301, 9303, 
9304, 9306.

    6. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 44 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

[[Page 14508]]

PART 46--MISCELLANEOUS REGULATIONS RELATING TO TOBACCO PRODUCTS AND 
CIGARETTE PAPERS AND TUBES

    7. The authority citation for Part 46 continues to read as follows:

    Authority:  18 U.S.C. 2341-2346, 26 U.S.C. 5704, 5708, 5751, 
5754, 5761-5763, 6001, 6601, 6621, 6622, 7212, 7342, 7602, 7606, 
7805; 44 U.S.C. 3504(h), 49 U.S.C. 782, unless otherwise noted.

    8. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 46 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

PART 71--RULES OF PRACTICE IN PERMIT PROCEEDINGS

    9. The authority citation for part 71 is revised to read as 
follows:

    Authority:  26 U.S.C. 5271, 5181, 5712, 5713, 7805, 27 U.S.C. 
204.

    10. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 71 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

    Signed: March 10, 2009.
John J. Manfreda,
Administrator.
    Approved: March 12, 2009.
Timothy E. Skud,
Deputy Assistant Secretary. (Tax, Trade, and Tariff Policy).
 [FR Doc. E9-7076 Filed 3-27-09; 11:15 am]
BILLING CODE 4810-31-P