[Federal Register Volume 75, Number 63 (Friday, April 2, 2010)]
[Rules and Regulations]
[Pages 16666-16667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7269]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 17, 19, 20, 22, 24, 25, 26, 27, 28, 31, 40, 44, 46, 
and 70

[Docket No. TTB-2009-0003; T.D. TTB-84; Re: Notice No. 96 and T.D. TTB-
79]
RIN 1513-AB63


Liquor Dealer Recordkeeping and Registration, and Repeal of 
Certain Special (Occupational) Taxes

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

ACTION: Final rule; Treasury decision.

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SUMMARY: This Treasury decision adopts as a final rule, without change, 
a temporary rule that amended the regulations administered by the 
Alcohol and Tobacco Tax and Trade Bureau to reflect the repeal of 
certain special (occupational) taxes effected by section 11125 of the 
Safe, Accountable, Flexible, Efficient Transportation Equity Act: A 
Legacy for Users. The regulatory amendments involved the repeal of 
special taxes on alcohol beverage producers and dealers, tax-free 
alcohol users, denatured spirits users and dealers, and persons 
claiming drawback for the manufacture of nonbeverage alcoholic 
products, and the inclusion of recordkeeping and registration 
requirements for dealers in distilled spirits, wines, and beer, and for 
manufacturers of nonbeverage products who claim drawback.

DATES: Effective Date: Effective May 3, 2010, the temporary rule 
published in the Federal Register at 74 FR 37394 on July 28, 2009, is 
adopted as a final rule without change, and by this regulatory action 
the temporary rule, which was effective from July 28, 2009, through 
July 30, 2012, is effective indefinitely.

FOR FURTHER INFORMATION CONTACT: Ben Birkhill, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau (202-453-2268 or 
[email protected]).

SUPPLEMENTARY INFORMATION:

Background

    Section 11125 of the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users, Public Law 109-59, 119 
Stat. 1144 (``the Act'') was signed by the President on August 10, 
2005. Section 11125 of the Act amended Chapters 51 and 52 of the 
Internal Revenue Code of 1986 (IRC), 26 U.S.C., to repeal the 
provisions covering special (occupational) tax (SOT) on alcohol 
beverage producers and dealers, tax-free alcohol users, denatured 
spirits users and dealers, and persons claiming drawback for the 
manufacture of nonbeverage alcoholic products.
    The Act did not eliminate the recordkeeping and registration 
requirements that applied to alcohol beverage dealers (including all 
persons in the business of selling alcohol products fit for beverage 
use) and nonbeverage drawback claimants prior to the SOT repeal. 
Further, the Act did not eliminate the SOT and related registration 
requirements for certain tobacco occupations (manufacturer of tobacco 
products, manufacturer of cigarette papers and tubes, and export 
warehouse proprietor).
    The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible 
for the administration of the provisions in Chapters 51 and 52 of the 
IRC relating to these tax, recordkeeping, and registration 
requirements, including the promulgation of regulations thereunder in 
chapter 1 of title 27 of the Code of Federal Regulations.

Publication of Temporary Rule

    On July 28, 2009, TTB published in the Federal Register (74 FR 
37394) a temporary rule, T.D. TTB-79, amending certain provisions in 27 
CFR parts 17, 19, 20, 22, 24, 25, 26, 27, 28, 31, 40, 44, 46, and 70. 
The temporary rule eliminated the regulatory provisions related to the 
SOT on the producers, dealers, users, and other persons referred to 
above. The temporary rule also included various amendments relating to 
registration and recordkeeping in order to clarify the application of 
these requirements to the persons subject to them.
    With regard to tobacco products and cigarette papers and tubes, the 
temporary rule added a new subpart D to 27 CFR part 46 (Miscellaneous 
Regulations Relating to Tobacco Products and Cigarette Papers and 
Tubes) in order to consolidate in one place the SOT provisions 
contained in 27 CFR parts 40 (Manufacture of Tobacco Products, 
Cigarette Papers and Tubes, and Processed Tobacco) and 44 (Exportation 
of Tobacco Products and Cigarette Papers and Tubes, without Payment of 
Tax, or with Drawback of Tax). This new subpart D also borrowed 
regulations from 27 CFR part 31 (Alcohol Beverage Dealers) to reflect 
SOT policy positions developed through rulemaking involving the alcohol 
beverage dealer's tax, including provisions relating to multiple 
businesses conducted by the same person at the same place, liability of 
partners, payment of the special tax, special tax stamps, and abatement 
or refund of special taxes.
    In addition, the temporary rule included a number of miscellaneous 
regulatory amendments to remove no longer needed references to the SOT. 
The amendments made by T.D. TTB-79 are discussed in more detail in the 
preamble of that document.
    In conjunction with the publication of the temporary rule, TTB also 
published on July 28, 2009, a notice of proposed rulemaking, Notice No. 
96, in the Federal Register (74 FR 37426). This notice invited the 
submission of public comments on the regulatory amendments contained in 
the temporary rule, with the comment period closing on September 28, 
2009. The Bureau did not receive any comments on the temporary rule in 
response to Notice No. 96. Accordingly, for the reasons set forth in 
the preamble of T.D. TTB-79, we have determined that it is appropriate 
to adopt that temporary rule as a final rule without change.

Regulatory Flexibility Act

    We certify that this regulation will not have a significant impact 
on a substantial number of small entities. Accordingly, a regulatory 
flexibility analysis is not required. The relevant collections of 
information derive directly from the Internal Revenue Code

[[Page 16667]]

of 1986, as amended, and the regulations in this rule concerning these 
collections merely implement the statutory requirements. Likewise, any 
secondary or incidental effects, and any reporting, recordkeeping, or 
other compliance burdens flow directly from the statute. Pursuant to 26 
U.S.C. 7805(f), the temporary regulation was submitted to the Chief 
Counsel for Advocacy of the Small Business Administration (SBA) for 
comment regarding its impact on small business, and TTB has not 
received any comments from SBA.

Paperwork Reduction Act

    TTB has provided estimates of the burdens that the collections of 
information contained in these regulations impose, and these estimated 
burdens have been reviewed and approved by the Office of Management and 
Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507) and assigned control numbers 1513-0088, 1513-0112, and 
1513-0113. Under the Paperwork Reduction Act of 1995, an agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid OMB control 
number.
    Comments concerning suggestions for reducing the burden of the 
collections of information in this document should be directed to Mary 
A. Wood, Alcohol and Tobacco Tax and Trade Bureau, at any of these 
addresses:
     P.O. Box 14412, Washington, DC 20044-4412;
     202-927-8525 (facsimile); or
     [email protected] (e-mail).

Executive Order 12866

    We have determined that this document is not a significant 
regulatory action as defined by Executive Order 12866. Therefore, a 
regulatory assessment is not required.

Drafting Information

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

List of Subjects

27 CFR Part 17

    Administrative practice and procedure, Claims, Cosmetics, Customs 
duties and inspection, Drugs, Excise taxes, Exports, Imports, Liquors, 
Packaging and containers, Puerto Rico, Reporting and recordkeeping 
requirements, Spices and flavorings, Surety bonds, Virgin Islands.

27 CFR Part 19

    Administrative practice and procedures, Caribbean Basin Initiative, 
Claims, Electronic funds transfers, Excise taxes, Exports, Gasohol, 
Imports, Labeling, Liquors, Packaging and containers, Puerto Rico, 
Reporting and recordkeeping requirements, Research, Security measures, 
Surety bonds, Vinegar, Virgin Islands, Warehouses.

27 CFR Part 20

    Alcohol and alcoholic beverages, Claims, Cosmetics, Excise taxes, 
Labeling, Packaging and containers, Penalties, Reporting and 
recordkeeping requirements, Surety bonds.

27 CFR Part 22

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Excise taxes, Reporting and recordkeeping requirements, 
Surety bonds.

27 CFR Part 24

    Administrative practice and procedure, Claims, Electronic fund 
transfers, Excise taxes, Exports, Food additives, Fruit juices, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Research, Scientific equipment, Spices and 
flavoring, Surety bonds, Vinegar, Warehouses, Wine.

27 CFR Part 25

    Administrative practice and procedure, Beer, Claims, Electronic 
funds transfers, Excise taxes, Exports, Labeling, Packaging and 
containers, Reporting and recordkeeping requirements, Research, Surety 
bonds.

27 CFR Part 26

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Caribbean Basin Initiative, Claims, Customs duties and 
inspection, Electronic funds transfers, Excise taxes, Packaging and 
containers, Puerto Rico, Reporting and recordkeeping requirements, 
Surety bonds, Virgin Islands, Warehouses.

27 CFR Part 27

    Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties 
and inspection, Electronic funds transfers, Excise taxes, Imports, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Wine.

27 CFR Part 28

    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.

27 CFR Part 31

    Alcohol and alcoholic beverages, Excise taxes, Exports, Packaging 
and containers, Reporting and recordkeeping requirements.

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 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 70

    Administrative practice and procedure, Claims, Excise taxes, 
Freedom of information, Law enforcement, Penalties, Reporting and 
recordkeeping requirements, Surety bonds.

The Regulatory Amendment

0
For the reasons discussed in the preamble, the temporary rule amending 
27 CFR parts 17, 19, 20, 22, 24, 25, 26, 27, 28, 31, 40, 44, 46, and 
70, published in the Federal Register at 74 FR 37394 on July 28, 2009, 
is adopted as a final rule without change and by this regulatory action 
the temporary rule, which was effective from July 28, 2009, through 
July 30, 2012, is effective indefinitely.

    Signed: February 5, 2010.
John J. Manfreda,
Administrator.
    Approved: March 19, 2010.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2010-7269 Filed 4-1-10; 8:45 am]
BILLING CODE 4810-31-P