[Federal Register Volume 74, Number 184 (Thursday, September 24, 2009)]
[Proposed Rules]
[Pages 48687-48689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23173]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 40, 41, and 45

[Docket No. TTB-2009-0002; Notice No. 99; Re: T.D. TTB-81, T.D. TTB-78, 
Notice No. 95]
RIN 1513-AB75


Extension of Package Use-Up Rule for Roll-Your-Own Tobacco and 
Pipe Tobacco (2009R-368P)

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

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

-----------------------------------------------------------------------

SUMMARY: Elsewhere in this issue of the Federal Register, the Alcohol 
and Tobacco Tax and Trade Bureau is issuing a temporary rule to extend 
the use-up period and delay the application of the new pipe tobacco and 
roll-your-own tobacco classification rule adopted on June 22, 2009, in 
response to certain changes made to the Internal Revenue Code of 1986 
by the Children's Health Insurance Program Reauthorization Act of 2009. 
That temporary rule also corrects two minor errors in the previously 
published regulatory texts. 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 November 23, 2009.

ADDRESSES: You may send comments on this notice to one of the following 
addresses:
     http://www.regulations.gov: Use the comment form for this 
notice on the Federal e-rulemaking portal, Regulations.gov, to submit 
comments via the Internet;
     Mail: Director, Regulations and Rulings Division, Alcohol 
and Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412.
     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, selected supporting materials, 
and any comments we receive about this proposal within Docket No. TTB-
2009-0002 at http://www.regulations.gov. A direct link to this docket 
is posted on

[[Page 48688]]

the TTB Web site at http://www.ttb.gov/tobacco/tobacco-rulemaking.shtml 
under Notice No. 99. You also may view copies of this notice, all 
supporting materials, and any comments we receive about this proposal 
by appointment at the TTB Information Resource Center, 1310 G Street, 
NW., Washington, DC 20220. Please call 202-453-2270 to make an 
appointment.

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

SUPPLEMENTARY INFORMATION: 

Background

    On June 22, 2009, the Alcohol and Tobacco Tax and Trade Bureau 
(TTB) published a temporary rule in the Federal Register (T.D. TTB-78, 
74 FR 29401) to implement certain changes made to the Internal Revenue 
Code of 1986 by the Children's Health Insurance Program Reauthorization 
Act of 2009 (the Act). The regulatory changes made by the temporary 
rule went into effect on June 22, 2009. The temporary rule included a 
new classification rule reflecting the expansion of the statutory 
definition of roll-your-own tobacco to include cigar wrapper and 
filler. The temporary rule also outlined new notice requirements for 
the packaging and labeling of pipe tobacco and roll-your-own tobacco to 
distinguish these two products from each other for tax purposes. As 
such, the temporary rule included two use-up rules allowing 
manufacturers and importers of pipe tobacco and roll-your-own tobacco 
to use their existing packages until August 1, 2009.
    In the June 22, 2009, issue of the Federal Register, TTB also 
published a notice of proposed rulemaking, Notice No. 95 (74 FR 29433), 
inviting comments on the temporary regulations contained in T.D. TTB-
78, with comments due on or before August 21, 2009. In response to 
Notice No. 95, we received two comments raising concerns regarding the 
pipe tobacco classification and notice provisions of T.D. TTB-78, which 
we believe warrant immediate consideration. Both commenters requested a 
delay in the implementation of the pipe tobacco classification and 
notice-related requirements, asserting that the use-up periods in the 
temporary regulations (that is, to August 1, 2009) gave insufficient 
time for industry members to comply with the new requirements.

New Temporary Rule and Notice of Proposed Rulemaking

    After carefully considering these two comments, TTB believes it 
should delay the application of the new classification rule regarding 
pipe tobacco and roll-your-own tobacco, and extend the two use-up rules 
for existing packaging. As a result, we are publishing a new temporary 
rule, T.D. TTB-81, in the Rules and Regulations section of this issue 
of the Federal Register. These revised temporary regulations involve 
amendments to parts 40, 41, and 45 of the TTB regulations (27 CFR parts 
40, 41, and 45). The text of the revised temporary regulations serves 
as the text of these proposed regulations, and the preamble to the 
revised temporary regulations explains these proposed regulations in 
detail. The new temporary rule also corrects two minor errors in the 
previously published regulatory texts.

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 using one of the 
following three methods:
     Federal e-Rulemaking Portal: You may send comments via the 
online comment form linked to this notice in Docket No. TTB-2009-0002 
on ``Regulations.gov,'' the Federal e-rulemaking portal, at http://www.regulations.gov. A link to the docket is available under Notice No. 
99 on the TTB Web site at http://www.ttb.gov/tobacco/tobacco-rulemaking.shtml. Supplemental files may be attached to comments 
submitted via Regulations.gov. For information on how to use 
Regulations.gov, click on the site's Help or FAQ tabs.
     U.S. Mail: You may send comments via postal mail 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. 99 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 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 Regulations.gov, 
please include the entity's name in the ``Organization'' blank of the 
comment form. If you comment via postal 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 that is inappropriate 
for public disclosure.

Public Disclosure

    On the Federal e-rulemaking portal, Regulations.gov, we will post, 
and the public may view, copies of this notice, the related temporary 
rule, selected supporting materials, and any electronic or mailed 
comments we receive about this proposal. A direct link to the 
Regulations.gov docket containing this notice and the posted comments 
received on it is available on the TTB Web site at http://www.ttb.gov/tobacco/tobacco-rulemaking.shtml under Notice No. 99. You may also 
reach the docket containing this notice and the posted comments 
received on it through the Regulations.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 and other members of the public may view copies of this notice, 
the related temporary rule, other supporting materials, and any 
electronic or mailed comments we receive about this proposal 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 202-453-2270 to schedule an appointment or to 
request copies of comments or other materials.

[[Page 48689]]

Regulatory Flexibility Act, Paperwork 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

    Michael Hoover of the Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, drafted this document.

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

Proposed Amendments to the Regulations

    For the reasons discussed in the preamble, TTB proposes to amend 27 
CFR, chapter I, parts 40, 41, and 45 as follows:

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

    1. The authority citation for part 40 is revised 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.

    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, AND PROCESSED TOBACCO

    3. The authority citation for part 41 is revised 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.

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

    5. The authority citation for part 45 is revised 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).

    6. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 45 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: August 23, 2009.
John J. Manfreda,
Administrator.

    Approved: September 4, 2009.
Timothy E. Skud,
Deputy Assistant Secretary. (Tax, Trade, and Tariff Policy).
[FR Doc. E9-23173 Filed 9-23-09; 8:45 am]
BILLING CODE 4810-31-P