[Federal Register: September 24, 2003 (Volume 68, Number 185)]
[Proposed Rules]
[Page 55281-55283]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24se03-3]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 55281]]
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 252
[TTB Notice No. 16]
RIN 1513-AA78
Evidence of Exportation for Distilled Spirits; Use of Alternative
Documentation (2002R-045P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau (TTB), Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to amend
its regulations listing the documents that provide adequate evidence of
export for shipments of distilled spirits. We also propose to require
submission of these documents within a specific 90-day timeframe. This
action is being taken to clarify the existing regulations as to the
types of acceptable documentation and to inform the public that the
Bureau will consider the approval of alternative types of documentation
as adequate export evidence.
DATES: Written comments must be received by November 24, 2003.
ADDRESSES: Send written comments to: Chief, Regulations and Procedures
Division, Alcohol and Tobacco Tax and Trade Bureau, P.O. Box 50221,
Washington, DC 20091-0221 (Attn: TTB Notice No. 16). See the ``Public
Participation'' section of this notice for alternative means of
commenting.
Copies of the proposed regulation, background materials, and any
written comments received will be available for public inspection by
appointment at the ATF Reference Library, Room 6480, 650 Massachusetts
Avenue, NW., Washington, DC 20226; telephone 202-927-7890. You may also
view online copies of this proposed regulation and any comments
received regarding it under this notice number at http://www.ttb.gov/alcohol/rules/index/htm
.
FOR FURTHER INFORMATION CONTACT: Joanne Brady, Specialist, Regulations
and Procedures Division (Philadelphia, PA), Alcohol and Tobacco Tax and
Trade Bureau, P.O. Box 45797, Philadelphia, PA 19149; telephone 215-
333-7050 or e-mail Joanne.Brady@ttb.gov.
SUPPLEMENTARY INFORMATION:
Impact of the Homeland Security Act on Rulemaking
Effective January 24, 2003, the Homeland Security Act of 2002
divided the Bureau of Alcohol, Tobacco and Firearms (ATF) into two new
agencies, the Alcohol and Tobacco Tax and Trade Bureau (TTB) in the
Department of the Treasury and the Bureau of Alcohol, Tobacco, Firearms
and Explosives in the Department of Justice. Regulation of distilled
spirits, including evidence of exportation, is the responsibility of
the new TTB. References to ATF in this document relate to events that
occurred prior to January 24, 2003, or to functions that the Bureau of
Alcohol, Tobacco, Firearms and Explosives continues to perform.
Background
Under the provisions of the Internal Revenue Code at 26 U.S.C.
5214, distilled spirits can be withdrawn from bonded premises for
exportation, free of tax or without payment of tax, subject to
regulations prescribed by the Secretary of the Treasury. To help carry
out these statutory provisions, the Alcohol and Tobacco Tax and Trade
Bureau (TTB) has issued regulations which list several types of
evidence that a proprietor can submit as adequate proof of export for
shipments of distilled spirits. The proprietor is relieved of the tax
liability at the time the distilled spirits are exported to a foreign
or export destination, provided the proper evidence of exportation is
submitted to TTB in a timely manner.
The Proposal
We propose to amend 27 CFR part 252, Exportation of Liquors, in
order to clarify the existing regulations regarding evidence of
exportation for shipments of distilled spirits. A new section, 27 CFR
252.39, clarifies the types of documentation that TTB will accept as
adequate proof of export for shipments of distilled spirits. This new
section will also require the documentation to be submitted within 90
days of the date of withdrawal of the distilled spirits.
We are taking this action regarding the submission of export
documents for distilled spirits at the recommendation of the Office of
the Inspector General. TTB's current internal processing procedures are
directed by order TTB O 5020.8A. According to this order, it is our
policy that exporters submit adequate proof of exportation within 90
days. An extension may be granted due to just cause. It is critical
that TTB act promptly in tax assessment matters.
The tobacco export regulations at 27 CFR part 44 require that
export evidence be furnished within 90 days of the date of removal of
the tobacco products, or cigarette papers or tubes. In order to
maintain consistency in TTB's internal processing procedures, we
propose to apply the 90-day requirement to shipments of distilled
spirits. We consider this time period to be a reasonable time for
exporters to obtain and submit documentation to us in support of an
export shipment. This period may be extended for just cause. At this
time we are concentrating on revising the regulations for exporters of
distilled spirits only. We will also be developing updated procedures
for the beer and wine industries in the future.
We propose to revise 27 CFR 252.40 to reflect a change in the
section heading. We also propose to add 27 CFR 252.44 to clarify and
remind the industry of the opportunity to submit alternative types of
documentation as adequate proof of export, provided such documentation
is:
[sbull] Complete and accurate;
[sbull] Third-party verifiable; and
[sbull] Contains the same information required in an export bill of
lading as outlined in 27 CFR 252.250.
In addition, we propose to add two new sections, 27 CFR 252.254 and
252.255, addressing certification of form TTB F 5100.11 by U.S. Customs
Service and certificates of receipt issued by officials of foreign
countries, both of which qualify as evidence of exportation.
TTB believes these additions and changes to the regulations will
provide the public with a better understanding of its export
documentation requirements, while allowing the industry the opportunity
to submit alternative documents for approval.
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Public Participation
TTB requests comments from all interested parties on the proposals
contained in this notice. We specifically request comments on the
clarity of this proposed rule and how it may be made easier to
understand.
What Is a Comment?
In order for a submission to be considered a ``comment,'' it must
clearly indicate a position for or against the proposed rule or some
part of it, or express neutrality about the proposed rule. Comments
that use reasoning, logic, and, if applicable, good science to explain
the commenter's position are the most persuasive in the formation of a
final rule.
To be eligible for consideration, comments must:
[sbull] Contain your name and mailing address;
[sbull] Reference this notice number;
[sbull] Be legible and written in language generally acceptable for
public disclosure;
[sbull] Contain a legible, written signature if submitted by mail
or fax; and
[sbull] Contain your e-mail address if submitted by e-mail.
To assure public access to our office equipment, comments submitted
by fax must be no more than five pages in length when printed on 8\1/2\
x 11'' paper. Comments submitted by U.S. mail or e-mail may be of any
length.
How May I Submit Comments?
By Mail: You may send written comments by U.S. mail to the address
shown above in the ADDRESSES section of this notice.
By Fax: You may submit comments by facsimile transmission to 215-
333-8871. We will treat faxed transmissions as originals.
By E-Mail: You may submit comments by e-mail by sending the
comments to nprm@ttb.treas.gov. We will treat e-mail transmissions as
originals.
By On-line Form: You may also submit comments using the comment
form provided with the online copy of this proposed rule on the TTB
Internet Web site at http://www.ttb.treas.gov/. We will treat comments
submitted via the Web site as originals.
How Does TTB Use the Comments?
We will carefully consider all comments we receive on or before the
closing date. We will not acknowledge receipt of comments or reply to
individual comments. We will summarize and discuss pertinent comments
in the preamble to any subsequent notices or the final rule published
as a result of the comments.
May I Review Comments Received?
You may view copies of the comments on this notice of proposed rule
making by appointment at the ATF Reference Library, Room 6480, 650
Massachusetts Avenue, NW., Washington, DC 20226, telephone (202) 927-
7890. You may also request copies of comments (at 20 cents per page) by
contacting the ATF Librarian at the above address.
For the convenience of the public, TTB will post comments received
in response to this notice on the TTB web site. All comments posted on
our web site will show the name of the commenter, but will not show
street addresses, telephone numbers, or e-mail addresses. We may also
omit voluminous attachments or material that we do not consider
suitable for posting. In all cases, the full comment will be available
in the ATF library as noted above. To access online copies of the
comments on this rulemaking, visit http://www.ttb.treas.gov/alcohol/rules/index.htm
, and click on the ``View comments'' button under this
notice number.
Will TTB Keep My Comments Confidential?
TTB cannot recognize any material in comments as confidential. All
comments and materials may be disclosed to the public in the ATF
library. We may also post the comment on our web site. (See ``May I
Review Comments Received?'') Finally, we may disclose the name of any
person who submits a comment and quote from the comment in the preamble
to a final rule on this subject. If you consider your material to be
confidential or inappropriate for disclosure to the public, you should
not include it in your comments.
Regulatory Analyses and Notices
Does the Paperwork Reduction Act Apply to This Proposed Rule?
The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C.
chapter 35, and its implementing regulations, 5 CFR part 1320, do not
apply to this notice because no new requirement to collect information
is proposed.
How Does the Regulatory Flexibility Act Apply to This Proposed Rule?
TTB certifies that this proposed regulation would not have a
significant economic impact on a substantial number of small entities.
We expect no negative impact on small entities. We are not proposing
new requirements. Accordingly, the Act does not require a regulatory
flexibility analysis.
Is This a Significant Regulatory Action as Defined by Executive Order
12866?
This is not a significant regulatory action as defined by Executive
Order 12866. Therefore, the order does not require a regulatory
assessment.
Drafting Information
The principal author of this document is Joanne Brady, Regulations
and Procedures Division, Alcohol and Tobacco Tax and Trade Bureau.
List of Subjects in 27 CFR Part 252
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.
Authority and Issuance
For the reasons set forth in the preamble, TTB proposes to amend 27
CFR part 252 as follows:
PART 252--EXPORTATION OF LIQUORS
1. The authority citation for part 252 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001,
5007, 5008, 5041, 5051, 5054, 5061, 5111, 5112, 5114, 5121, 5122,
5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805; 27
U.S.C. 203, 205; 44 U.S.C. 3504(h).
Subpart C--Miscellaneous Provisions
2. Section 252.39 is added to read as follows:
Sec. 252.39 Filing of evidence of exportation for distilled spirits.
(a) Required evidence of exportation. You must provide acceptable
export evidence that covers the transportation of the specified
shipments of distilled spirits from your plant to the foreign or export
destination. This evidence must be accurate and complete and verified
by the signature of an authorized individual. We accept the following
documents as proof of exportation:
(1) A copy of an export bill of lading, such as an ocean bill of
lading, signed by the carrier or its agent (Sec. 252.250); or
(2) A copy of the railway express receipt (Sec. 252.251), signed
by the carrier or its agent, containing the same information required
in an export bill of lading (Sec. 252.250); or
(3) A copy of the air express receipt (Sec. 252.252), signed by
the carrier or its agent, containing the same information
[[Page 55283]]
required in an export bill of lading (Sec. 252.250); or
(4) A copy of the through bill of lading, signed by the carrier or
its agent, where exportation is to a contiguous foreign country (Sec.
252.250); or
(5) A certificate from the export carrier or its agent, showing
actual exportation, when a bill of lading is required and not
obtainable, executed under the penalties of perjury, as provided for in
Sec. 252.253. It must contain the same information required in an
export bill of lading (Sec. 252.250); or
(6) U.S. Customs certification on TTB F 5100.11, or a certificate
of receipt as provided for in Sec. 252.254; or
(7) A certificate of receipt issued by an official of the country
or possession where the shipment of distilled spirits has actually
landed, as provided for in Sec. 252.255.
(b) Time period for filing evidence. You must submit the evidence
of exportation of any shipment of distilled spirits to the appropriate
TTB officer within 90 days of the date of withdrawal and removal of the
distilled spirits from the premises of the distilled spirits plant
covered by the bond of the proprietor. The appropriate TTB officer may
grant an extension in cases where just cause is shown.
3. The heading of Sec. 252.40 is revised to read as set forth
below:
Sec. 252.40 Filing of evidence of exportation for wine.
* * * * *
4. Section 252.44 is added to read as follows:
Sec. 252.44 Alternative documentation.
We may approve alternative types of documentation, upon letterhead
request, provided such documentation is complete and accurate, third
party verifiable, and contains the same information required in an
export bill of lading (Sec. 252.250). You must follow the procedures
in Sec. 252.20 if you wish to request approval for use of alternative
types of documentation.
Subpart M--Shipment or Delivery for Export
5. Section 252.254 is added as follows:
Sec. 252.254 Certification on withdrawal of spirits, specially
denatured spirits, or wines for exportation, TTB F 5100.11.
To use TTB F 5100.11 as proof of export you must obtain
certification by U.S. Customs Service in Part VII, Certificate of
Clearance or Use, of the form. A signed certificate of receipt from
U.S. Customs Service is also acceptable, if it contains the same
information required in an export bill of lading (Sec. 252.250).
6. Section 252.255 is added as follows:
Sec. 252.255 Certificate by foreign official.
TTB will accept an appropriate certification from a foreign
official as proof of export. If you use this proof, you must provide a
signed certificate of receipt by an authorized official of a foreign
country or possession verifying actual exportation. The certificate
must contain sufficient information to identify the shipment and the
TTB F 5100.11 covering the shipment.
Signed: August 8, 2003.
Arthur J. Libertucci,
Administrator.
Approved: August 8, 2003.
Timothy E. Skud,
Deputy Assistant Secretary, Regulatory, Tariff & Trade Enforcement.
[FR Doc. 03-23886 Filed 9-23-03; 8:45 am]
BILLING CODE 4810-13-P