[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR40.1]

[Page 820-822]
 
            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 A_Scope of Regulations
 
Sec. 40.1  Manufacture of tobacco products and cigarette papers and tubes.




                     Subpart A_Scope of Regulations

Sec.
40.1 Manufacture of tobacco products and cigarette papers and tubes.
40.2 Territorial extent.

                          Subpart B_Definitions

40.11 Meaning of terms.

                             Subpart C_Taxes

40.21 Cigar tax rates.
40.22 Determination of sale price of large cigars.
40.23 Cigarette tax rates.
40.24 Classification of cigarettes.
40.25 Smokeless tobacco tax rates.
40.25a Pipe tobacco and roll-your-own tobacco tax rates.
40.26 Persons liable for tax.
40.27 Assessment.

                 Subpart Ca_Special (Occupational) Taxes

40.31 Liability for special tax.
40.32 Rates of special tax.
40.33 Special tax returns.
40.34 Employer identification number.
40.35 Issuance, distribution, and examination of special tax stamps.
40.36 Changes in special tax stamps.

                   Subpart D_Administrative Provisions

40.41 Forms prescribed.
40.42 Authority of ATF officers to enter premises.
40.43 Interference with administration.
40.44 Disposal of forfeited, condemned, and abandoned tobacco products.
40.45 Alternate methods or procedures.
40.46 Emergency variations from requirements.
40.47 Other businesses within factory.
40.48 Penalties and forfeitures.
40.49 Delegations of the Director.

         Subpart E_Qualification Requirements for Manufacturers

40.61 Qualification--General.
40.61a Transitional rule.
40.62 Application for permit.
40.63 Corporate documents.
40.64 Articles of partnership or association.
40.65 Trade name certificate.
40.66 Bond.
40.67 Blanket bond.
40.68 Power of attorney.
40.69 Factory premises.
40.70 Separation of and access to factory.
40.71 Factories established prior to October 1, 1961.
40.72 Use of factory premises.
40.73 Additional information.
40.74 Investigation of applicant.
40.75 Issuance of permit.
40.76 Retention of permit and supporting documents.

     Subpart F_Changes After Original Qualification of Manufacturers

                             Changes in Name

40.91 Change in individual name.
40.92 Change in trade name.
40.93 Change in corporate name.

                    Changes in Ownership and Control

40.101 Fiduciary successor.
40.102 Transfer of ownership.
40.103 Change in officers, directors, or stockholders of a corporation.
40.104 Change in control of a corporation.

                     Changes in Location of Factory

40.111 Change in location within same region.
40.112 Change in address.
40.113 Change in location to another region.
40.114 Extension or curtailment of factory.

           Subpart G_Bonds and Extensions of Coverage of Bonds

40.131 Corporate surety.
40.132 Deposit of securities in lieu of corporate surety.
40.133 Amount of individual bond.
40.134 Amount of blanket bond.
40.135 Strengthening bond.
40.136 Superseding bond.
40.137 Extension of coverage of bond.
40.138 Approval of bond and extension of coverage of bond.
40.139 Termination of bond.
40.140 Release of pledged securities.

                  Subpart H_Operations by Manufacturers

         Determination and Payment of Taxes on Tobacco Products

40.161 Determination of tax and method of payment.
40.162 Semimonthly tax return.
40.163 Semimonthly tax return periods.
40.164 Special rule for taxes due for the month of September (effective 
          after December 31, 1994).
40.165 Times for filing semimonthly return.
40.165a Payment of tax by electronic fund transfer.
40.166 Default, prepayment of tax required.
40.167 Prepayment tax return.
40.168 Remittance with return.

[[Page 821]]

40.169 Employer identification number.
40.170 Application for employer identification number.
40.171 Execution and filing of Form SS-4.

                                 Records

40.181 General.
40.182 Record of tobacco.
40.183 Record of tobacco products.
40.184 Record of removals subject to tax.
40.185 Retention of records.
40.186 Record in support of transfers in bond.
40.187 Record of sales prices of large cigars.

                         Inventories and Reports

40.201 Inventories.
40.202 Reports.

                                Packages

40.211 Package.
40.212 Mark.
40.213 Tobacco products labeled for export.
40.214 Notice for cigars.
40.215 Notice for cigarettes.
40.216 Notice for smokeless tobacco.
40.216a Notice for pipe tobacco.
40.216b Notice for roll-your-own tobacco.
40.216c Package use-up rule.
40.217 Repackaging.

                Exemption From Taxes on Tobacco Products

40.231 Consumption by employees.
40.232 Experimental purposes.
40.233 Transfer in bond.
40.234 Removal for use of the United States.
40.235 Removal for export purposes.
40.236 Release from customs custody.

              Other Provisions Relating to Tobacco Products

40.251 Emergency storage.
40.252 Reduction of tobacco products to materials.
40.253 Destruction.
40.254 Receipt into factory.
40.255 Shortages and overages in inventory.

                    Subpart I_Claims by Manufacturers

                                 General

40.281 Abatement of assessment.
40.282 Allowance of tax.
40.283 Credit or refund of tax.
40.284 Remission of tax liability.
40.285 [Reserved]
40.286 Refund of overpayment.
40.287 Remission of tax liability on shortage.

                   Tobacco Products Lost or Destroyed

40.301 Action by claimant.

               Tobacco Products Withdrawn From the Market

40.311 Action by claimant.
40.312 Action by regional director (compliance).
40.313 Disposition of tobacco products and schedule.

 Subpart J_Suspension and Discontinuance of Operations by Manufacturers

40.331 Discontinuance of operations.
40.332 Suspension and revocation of permit.

           Subpart K_Manufacture of Cigarette Papers and Tubes

                                  Taxes

40.351 Cigarette papers.
40.352 Cigarette tubes.
40.353 Persons liable for tax.
40.354 Determination of tax and method of payment.
40.355 Return of manufacturer.
40.356 Adjustments in the return of manufacturer.
40.357 Payment of tax by electronic fund transfer.
40.358 Assessment.
40.359 Employer identification number.
40.360 Application for employer identification number.
40.361 Execution and filing of Form SS-4.

                      Special (Occupational) Taxes

40.371 Liability for special tax.
40.372 Rate of special tax.
40.373 Special tax returns.
40.374 Issuance, distribution, and examination of special tax stamps.
40.375 Changes in special tax stamps.

                                 General

40.382 Authority of ATF officers to enter premises.
40.383 Interference with administration.
40.384 Disposal of forfeited, condemned, and abandoned cigarette papers 
          and tubes.
40.385 Alternate methods or procedures.
40.386 Emergency variations from requirements.
40.387 Penalties and forfeitures.

              Qualification Requirements for Manufacturers

                         Original Qualifications

40.391 Persons required to qualify.
40.392 Bond.
40.393 Power of attorney.
40.394 Notice of approval of bond.

                  Changes After Original Qualification

40.395 Change in name.
40.396 Change in proprietorship.

[[Page 822]]

40.397 Change in location.

                Bonds and Extensions of Coverage of Bonds

40.401 Corporate surety.
40.402 Two or more corporate sureties.
40.403 Deposit of securities in lieu of corporate surety.
40.404 Amount of bond.
40.405 Strengthening bond.
40.406 Superseding bond.
40.407 Extension of coverage of bond.
40.408 Approval of bond and extension of coverage of bond.
40.409 Termination of liability of surety under bond.
40.410 Release of pledged securities.

                       Operations by Manufacturers

                                 Records

40.421 General.

                                 Reports

40.422 General.
40.423 Opening.
40.424 Monthly.
40.425 Special.
40.426 Closing.

                               Inventories

40.431 General.
40.432 Opening.
40.433 Special.
40.434 Closing.

                           Document Retention

40.435 General.

                                Packages

40.441 General.

                        Miscellaneous Operations

40.451 Transfer in bond.
40.452 Release from customs custody.
40.453 Use of the United States.
40.454 Removal for export purposes.

                  Permanent Discontinuance of Business

40.461 Discontinuance of operations.

                         Claims by Manufacturers

                                 General

40.471 Abatement.
40.472 Allowance.
40.473 Credit or refund.
40.474 Remission.

                            Lost or Destroyed

40.475 Action by claimant.

                        Withdrawn From the Market

40.476 Action by claimant.
40.477 Action by regional director (compliance).
40.478 Disposition of cigarette papers and tubes and schedule.

    Authority: 26 U.S.C. 5142, 5143, 5146, 5701, 5703-5705, 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.

    Source: 26 FR 8174, Aug. 31, 1961, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975; 54 FR 48839, Nov. 27, 1989, 
and further redesignated by T.D. ATF-460, 66 FR 39093, July 27, 2001.

    Editorial Note: Nomenclature changes to part 40 appear by T.D. ATF-
460, 66 FR 39094-39096, July 27, 2001 and T.D. ATF-464, 66 FR 43479, 
Aug. 20, 2001.



    This part contains regulations relating to the manufacture of 
tobacco products and cigarette papers and tubes; the payment by 
manufacturers of tobacco products and cigarette papers and tubes of 
internal revenue taxes imposed by 26 U.S.C. chapter 52; and the 
qualification of and operations by manufacturers of tobacco products.

[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996]