[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: 27CFR40.74]

[Page 816-817]
 
            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 E_Qualification Requirements for Manufacturers
 
Sec. 40.74  Investigation of applicant.

    As the regional director (compliance) deems necessary he will cause 
inquiry or investigation to be made to verify the information furnished 
in connection with an application for permit and to ascertain whether 
the applicant is, by reason of his business experience, financial 
standing, and trade connections, likely to maintain operations in 
compliance with 26 U.S.C. chapter 52, and regulations thereunder; 
whether such person has disclosed all material information required or 
made any material false statement in the application for such permit; 
and whether the

[[Page 817]]

premises on which it is proposed to establish the factory are adequate 
to protect the revenue. If the regional director (compliance) has reason 
to believe that the applicant is not entitled to a permit, he shall 
promptly give the applicant notice of the contemplated disapproval of 
his application and opportunity for hearing thereon in accordance with 
part 71 of this chapter, which part (including the provisions relating 
to the recommended decision and to appeals) is applicable to such 
proceedings. If, after such notice and opportunity for hearing, the 
regional director (compliance) finds that the applicant is not entitled 
to a permit, he shall, by order stating the findings on which his 
decision is based, deny the permit.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1421, as amended (26 U.S.C. 5713))

[26 FR 8174, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-463, 
66 FR 42734, Aug. 15, 2001]