[Federal Register Volume 74, Number 144 (Wednesday, July 29, 2009)]
[Rules and Regulations]
[Pages 37551-37552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17920]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 40, 41, and 45

[Docket No. TTB-2009-0002; T.D. TTB-80; Re: T.D. TTB-78 and Notice No. 
95]
RIN 1513-AB72


Implementation of Statutory Amendments Requiring the 
Qualification of Manufacturers and Importers of Processed Tobacco and 
Other Amendments Related to Permit Requirements, and the Expanded 
Definition of Roll-Your-Own Tobacco; Correction

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

ACTION: Temporary rule; Treasury decision; correction.

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SUMMARY: On June 22, 2009, the Alcohol and Tobacco Tax and Trade Bureau 
published a temporary rule in the Federal Register to implement certain 
changes made to the Internal Revenue Code of 1986 by the Children's 
Health Insurance Program Reauthorization Act of 2009. The principal 
changes involve permit and related requirements for manufacturers and 
importers of processed tobacco and an expansion of the definition of 
roll-your-own tobacco. That temporary rule contained several minor 
inadvertent errors; this document corrects those errors.

DATES: Effective Date: These amendments are effective July 29, 2009 
through June 22, 2012.

FOR FURTHER INFORMATION CONTACT: Amy R. Greenberg, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau (202-453-
2099).

SUPPLEMENTARY INFORMATION: On June 22, 2009, the Alcohol and Tobacco 
Tax and Trade Bureau (TTB) published a temporary rule in the Federal 
Register to implement certain changes made to the Internal Revenue Code 
of 1986 by the Children's Health Insurance Program Reauthorization Act 
of 2009 (see T.D. TTB-78, 74 FR 29401). The temporary rule was 
effective on the date

[[Page 37552]]

of publication, June 22, 2009, and, unless otherwise finalized, will 
expire on June 22, 2012. The principal changes to our regulations made 
by T.D. TTB-78 involve permit and related requirements for 
manufacturers and importers of processed tobacco and an expansion of 
the definition of roll-your-own tobacco.
    After its publication, we found that T.D. TTB-78 contained several 
minor inadvertent errors. This document corrects these errors.
    Three errors involved improperly cited cross-references. In Sec.  
40.216c(b), the citation for Sec.  40.216(b) should have read Sec.  
40.216b; in Sec.  41.72c, the citation for Sec.  41.72(b) should have 
read Sec.  41.72b; and in Sec.  45.45c, the citation for Sec.  
40.216(b) should have read Sec.  45.45b. Two errors involved improper 
dates. In Sec.  40.522(b), the date August 15, 2009, cited in the 
example, should have read August 20, 2009, and in Sec.  45.45c(a), the 
use up date for packages labeled with ``Tax Class L'' (to designate 
pipe tobacco) or ``Tax Class J'' (to designate roll-your-own tobacco) 
should have read August 1, 2009, rather than July 1, 2009.
    In addition, we are correcting five passages to clarify a date or 
numerical limit, to clarify a regulation's intent, or to clarify to 
whom the regulation applies. In Sec.  40.256, we clarify the last 
sentence so that the quantity of tobacco products manufactured may be 
equal to or exceed the quantity transferred or received in bond rather 
than only exceed that quantity. In Sec.  40.493(a)(2), we clarify that 
a manufacturer of processed tobacco may continue in business if an 
application for a permit is submitted on or before June 30, 2009, 
rather than only before that date. In Sec.  40.496, we clarify that the 
regulation applies only to manufacturers of processed tobacco operating 
under a trade name rather than to all manufacturers of processed 
tobacco. In Sec.  40.513, we clarify that a manufacturer of processed 
tobacco who changes the factory's location must apply for and obtain an 
amended permit before beginning operations at the new location rather 
than merely apply for an amended permit. In Sec.  40.528, we clarify 
that the regulation applies to manufacturers of processed tobacco 
rather than to manufacturers of tobacco products.
    We also solicited public comments on the amendments contained in 
the temporary rule through a concurrent notice of proposed rulemaking 
(see Notice No. 95, June 22, 2009, 74 FR 29433). Given that the 
corrections in this document do not make substantial changes to the 
amendments contained in the temporary rule, we are not issuing a formal 
correction to the notice of proposed rulemaking, and we are not 
extending its comment period, which closes on August 21, 2009.

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 45

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

Amendments to the Regulations

0
For the reasons set forth in the preamble, title 27, chapter I, of the 
Code of Federal Regulations is amended as follows:

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

0
1. The authority citation for part 40 continues to read as follows:

    Authority:  26 U.S.C. 5142, 5143, 5146, 5701-5705, 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.  40.216c  [Amended]

0
2. In paragraph (b) of Sec.  40.216c, revise the cross-reference 
``Sec.  40.216(b)'' to read ``Sec.  40.216b''.


Sec.  40.256  [Amended]

0
3. In the last sentence of Sec.  40.256, remove the word ``exceed'' and 
add in its place the words ``be equivalent to, or exceed,''.


Sec.  40.493  [Amended]

0
4. In paragraph (a)(2) of Sec.  40.493, remove the word ``Before'' and 
add in its place the words ``On or before''.


Sec.  40.496  [Amended]

0
5. In the first sentence of Sec.  40.496, after the words 
``manufacturer of processed tobacco'', add the words ``operating under 
a trade name''.


Sec.  40.513  [Amended]

0
6. In the first sentence of Sec.  40.513, after the phrase ``make 
application on TTB F 5200.16 for'' add the phrase ``, and obtain,''.


Sec.  40.522  [Amended]

0
7. In last sentence of paragraph (b) in Sec.  40.522, revise the date 
``August 15, 2009'' to read ``August 20, 2009''.


Sec.  40.528  [Amended]

0
8. In the first sentence of Sec.  40.528, remove the phrase 
``manufacturer of tobacco products'' and add in its place the phrase 
``manufacturer of processed tobacco''.

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

0
9. The authority citation for part 41 continues to read as follows:

    Authority: 26 U.S.C. 5701-5705, 5708, 5712, 5713, 5721-5723, 
5741, 5754, 5761-5763, 6301, 6302, 6313, 6402, 6404, 7101, 7212, 
7342, 7606, 7651, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.


Sec.  41.72c  [Amended]

0
10. In paragraph (b) of Sec.  41.72c, revise the cross-reference 
``Sec.  41.72(b)'' to read ``Sec.  41.71b''.

PART 45--REMOVAL OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND 
TUBES, WITHOUT PAYMENT OF TAX, FOR USE OF THE UNITED STATES

0
11. The authority citation for part 45 continues to read as follows:

    Authority:  26 U.S.C. 5702-5705, 5723, 5741, 5751, 5762, 5763, 
6313, 7212, 7342, 7606, 7805; 44 U.S.C. 3504(h).


Sec.  45.45c  [Amended]

0
12. Amend Sec.  45.45c in paragraph (a) by removing the date ``July 1, 
2009'' and adding in its place the date ``August 1, 2009'' and in 
paragraph (b) by revising the cross-reference ``Sec.  40.216(b)'' to 
read ``Sec.  45.45b''.

    Dated: July 15, 2009.
John J. Manfreda,
Administrator.
[FR Doc. E9-17920 Filed 7-28-09; 8:45 am]
BILLING CODE 4810-31-P