[Federal Register Volume 78, Number 124 (Thursday, June 27, 2013)]
[Proposed Rules]
[Pages 38646-38647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-15248]



[[Page 38646]]

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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 40, 41, and 44

[Docket No. TTB-2013-0006; Notice No. 137; Re: T.D. TTB-115; T.D. ATF-
421; T.D. ATF-422; ATF Notice Nos. 887 and 888]
RIN 1513-AB37


Importer Permit Requirements for Tobacco Products and Processed 
Tobacco, and Other Requirements for Tobacco Products, Processed Tobacco 
and Cigarette Papers and Tubes

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

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: Elsewhere in this issue of the Federal Register, by means of a 
temporary rule, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is 
amending its regulations pertaining to permits for importers of tobacco 
products and processed tobacco by extending the duration of new permits 
from three years to five years. Based on its experience in the 
administration and enforcement of importer permits over the past 
decade, TTB believes that it can gain administrative efficiencies and 
reduce the burden on industry members, while still meeting the purposes 
of the limited-duration permit, by extending the permit duration to 
five years. That temporary rule also makes several technical 
corrections by amending the definition of ``Manufacturer of tobacco 
products'' to reflect a recent statutory change, and by amending a 
reference to the sale price of large cigars to incorporate a 
clarification published in a prior TTB temporary rule. Finally, the 
temporary rule published elsewhere in this issue incorporates and 
reissues TTB regulations pertaining to importer permit requirements for 
tobacco products, and minimum manufacturing and marking requirements 
for tobacco products and cigarette papers and tubes, and, as a result, 
that temporary rule replaces temporary regulations originally published 
in 1999. The text of the regulations in that temporary rule published 
elsewhere in this issue of the Federal Register serves as the text of 
the proposed regulations.

DATES: Comments must be received on or before August 26, 2013.

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-2013-0006 at 
``Regulations.gov,'' the Federal e-rulemaking portal);
     Mail: Director, Regulations and Rulings Division, Alcohol 
and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, 
Washington, DC 20005; or
     Hand Delivery/Courier in Lieu of Mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street NW., Suite 200E, 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 within Docket No. 
TTB-2013-0006. A direct link to that Regulations.gov docket is also 
available under Notice No. 137 on the TTB Web site at http://www.ttb.gov/tobacco/tobacco-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. Please call 202-453-
2270 to make an appointment.

FOR FURTHER INFORMATION CONTACT: For questions concerning this 
document, contact David Berenbaum, Regulations and Rulings Division, 
Alcohol and Tobacco Tax and Trade Bureau (202-453-1039, ext. 100 or 
[email protected]).

SUPPLEMENTARY INFORMATION: 

Background

    In the Rules and Regulations section of this issue of the Federal 
Register, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is 
amending regulations pertaining to permits for importers of tobacco 
products and processed tobacco by extending the duration of new permits 
from three years to five years. TTB is also issuing a temporary rule 
reissuing and updating regulatory amendments to implement certain 
provisions of the Balanced Budget Act of 1997 (BBA) (Pub. L. 105-33, 
111 Stat. 672). The temporary rule updates and reissues TTB regulations 
pertaining to importer permit requirements for tobacco products, and 
minimum manufacturing and marking requirements for tobacco products and 
cigarette papers and tubes. The regulations contained in the temporary 
rule and proposed in this document replace temporary regulations issued 
under T.D. ATF-421 and T.D. ATF-422, which were originally published in 
1999 by the former Bureau of Alcohol, Tobacco and Firearms (ATF). 
Finally, the temporary rule makes several technical corrections by 
amending the definition of ``Manufacturer of tobacco products'' to 
reflect a recent statutory change, and amending references to the sale 
price of large cigars to incorporate a clarification published in a 
prior TTB temporary rule.
    The temporary regulations involve amendments to parts 40, 41, and 
44 of the TTB regulations (27 CFR parts 40, 41, and 44). 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

    TTB invites comments from interested members of the public on this 
proposed rulemaking. Please submit your comments by the closing date 
shown above in this notice. Your comments must reference Notice No. 137 
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. TTB does not acknowledge receipt of comments, and 
TTB considers all comments as originals.

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, Docket No. TTB-2013-0006, and its related 
comment submission form is available on the TTB Web site at http://www.ttb.gov/tobacco/tobacco-rulemaking.shtml under Notice No. 137. You 
may also reach this notice and its related comment form via the 
Regulations.gov search page at http://www.regulations.gov. Supplemental 
files may be attached to comments submitted via Regulations.gov. For 
information on how to use Regulations.gov, visit the site and click on 
the ``Help'' tab.
     Mail: You may send written comments to the Director, 
Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade 
Bureau, 1310 G Street NW., Box 12, Washington, DC 20005.
     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 200E, Washington, DC 20005.

[[Page 38647]]

    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, TTB will post, 
and you may view, copies of this notice, any electronic or mailed 
comments TTB receives about this proposal, and the related temporary 
rule within Docket No. TTB-2013-0006. A direct link to that 
Regulations.gov docket is available on the TTB Web site at http://www.ttb.gov/tobacco/tobacco-rulemaking.shtml under Notice No. 137. You 
may also reach the relevant docket 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 email addresses. TTB may omit voluminous 
attachments or material that TTB considers unsuitable for posting.
    You also may view copies of this notice, any electronic or mailed 
comments TTB receives 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 TTB's 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.

Regulatory Analysis

    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 
analysis contained in the preamble of the temporary rule concerning the 
Regulatory Flexibility Act, the Paperwork Reduction Act, the 
inapplicability of prior notice and comment, and Executive Order 12866 
also apply to this proposed rule.

Drafting Information

    Kara T. Fontaine and other Regulations and Rulings Division staff, 
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 fund 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.

Proposed Amendments to the Regulations

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

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

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

    Authority: 26 U.S.C. 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.

0
2. [The proposed amendatory instructions and the proposed regulatory 
text for part 40 are the same as the amendatory instructions and the 
amendatory 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, CIGARETTE PAPERS AND 
TUBES, AND PROCESSED TOBACCO

0
3. 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, 6404, 7101, 7212, 7342, 
7606, 7651, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

0
4. [The proposed amendatory instructions and the proposed regulatory 
text for part 41 are the same as the amendatory instructions and the 
amendatory 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

0
5. The authority citation for part 44 continues to read as follows:

    Authority: 26 U.S.C. 5701-5705, 5711-13, 5721-5723, 5731, 5741, 
5751, 5754, 6061, 6065, 6151, 6402, 6404, 6806, 7011, 7212, 7342, 
7606, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

0
6. [The proposed amendatory instructions and the proposed regulatory 
text for part 44 are the same as the amendatory instructions and the 
amendatory 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: April 10, 2013.
John J. Manfreda,
Administrator.
    Approved: April 11, 2013.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2013-15248 Filed 6-26-13; 8:45 am]
BILLING CODE 4810-31-P