[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: 27CFR41.85]

[Page 892-893]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 41_IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES
--Table of Contents
 
Subpart F_Tobacco Products and Cigarette Papers and Tubes, Imported Into 
                    or Returned to the United States
 
Sec. 41.85  Release from customs custody of imported tobacco articles.

    (a) The provisions of this section apply only to tobacco products, 
cigarette papers, and cigarettes tubes, which are not put up in 
packages, i.e., not placed by the manufacturer or importer in packages 
in which the products will be sold to consumers. Tobacco products 
manufactured in a foreign country, the Virgin Islands, or a possession 
of the United States may be released by the Port Director of Customs or 
authorized customs officer from customs custody, without payment of 
internal revenue tax, for transfer to the factory of any manufacturer of 
tobacco products under the internal revenue bond of the manufacturer to 
whom such articles are released. Cigarette papers and tubes manufactured 
in a foreign country, the Virgin Islands, or a possession of the United 
States may be released by the Port Director of Customs or authorized 
customs officer from customs custody, without payment of internal 
revenue tax, for transfer, under the internal revenue bond of the 
manufacturer to whom such articles are released, to the factory of a 
manufacturer of cigarette papers and tubes; or a manufacturer of tobacco 
products solely for use in the manufacture of cigarettes. Releases under 
this section must be in accordance with Sec. 41.86: Provided, however, 
that in the

[[Page 893]]

case of products exported from the Virgin Islands, in order for a 
manufacturer of tobacco products or a manufacturer of cigarette papers 
and tubes to remove such products from customs custody in the United 
States under the manufacturer's internal revenue bond without payment of 
internal revenue tax, the manufacturer must file an extension of 
coverage of the internal revenue bond on TTB Form 2105, and receive a 
notice of approval from the appropriate TTB officer. The extension of 
coverage must be executed by the principal and the surety and must be in 
the following form:

    ``Whereas the purpose of this extension is to bind the obligors for 
the purpose of the tax imposed by 26 U.S.C. 7652(b), on tobacco products 
and tubes exported from the Virgin Islands and removed from customs 
custody in the United States without payment of internal revenue tax, 
for delivery to the principal on said bond.''
    ``Now, therefore, the said bond is further specifically conditioned 
that the principal named therein must pay all taxes imposed by 26 U.S.C. 
7652(b) plus penalties, if any, and interest, for which he may become 
liable with respect to these products exported from the Virgin Islands 
and removed from customs custody in the United States without payment of 
internal revenue tax thereon, and must comply with all provision of law 
and regulations with respect thereto.''

    (b) Articles received into the factory of a manufacturer under the 
provision of this section are subject to the provisions of part 40 of 
this chapter.

(72 Stat. 1418, as amended; 26 U.S.C. 5704)

[T.D. ATF-422, 64 FR 71949, Dec. 22, 1999. Redesignated and amended by 
T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]