[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR40.44]

[Page 811-812]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 40_MANUFACTURE OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES
--Table of Contents
 
                   Subpart D_Administrative Provisions
 
Sec. 40.44  Disposal of forfeited, condemned, and abandoned tobacco 
products.

    A Federal, State, or local officer shall not sell or cause to be 
sold for consumption in the United States any forfeited, condemned, or 
abandoned tobacco products in his custody upon which the Federal tax has 
not been paid, if in his opinion the sale thereof

[[Page 812]]

will not bring a price equal to the tax due and payable thereon and the 
expenses incident to the sale thereof. Where the products are not sold 
the officer may deliver them to a Federal or State hospital or 
institution (if they are fit for consumption) or cause their destruction 
by burning completely or by rendering them unfit for consumption. Where 
such products are sold they shall be released by the officer having 
custody thereof only after they are properly packaged and taxpaid. A 
receipt from the regional director (compliance) evidencing payment of 
tax on such products shall be presented to the officer having custody of 
the products, which tax shall be considered part of the sales price. 
Where tobacco products which have been packaged under the provisions of 
part 44 or part 45 of this chapter are to be released after payment of 
tax, the purchaser shall appropriately mark each package ``Federal Tax 
Paid (date)'' before the officer having custody of the products releases 
them:

Provided, That if the purchaser is a qualified manufacturer of tobacco 
products, or for products packaged under part 44 a qualified export 
warehouse proprietor, the products may be released without such marking 
of the packages if the manufacturer or proprietor does not intend to 
place such products on the domestic market for taxable products but will 
dispose of them otherwise, such as by destruction or return to bond 
through claim for refund, and files a written statement to that effect, 
in original only, with the officer having custody of the products. In 
the case of products forfeited under the internal revenue laws the sale 
shall be subject to the provisions of part 172 of this chapter.

(68A Stat. 870, as amended, 72 Stat. 1425, as amended; 26 U.S.C. 7325, 
5753)

[T.D. 6961, 33 FR 9488, June 28, 1968. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-232, 51 FR 28080, Aug. 5, 1986; T.D. 
ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19339, May 22, 
1987; T.D. ATF-469, 66 FR 56758, Nov. 13, 2001]