[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: 27CFR46.205]

[Page 972]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 46_MISCELLANEOUS REGULATIONS RELATING TO TOBACCO PRODUCTS AND 
CIGARETTE PAPERS AND TUBES--Table of Contents
 
  Subpart I_Floor Stocks Tax on Cigarettes Held for Sale on January 1, 
                       2000 and on January 1, 2002
 
Sec. 46.205  Physical inventory requirements.

    Your physical inventory must include a written record of:
    (a) Quantity and Type. You must record the quantity and type of 
cigarettes in sufficient detail to determine the tax rate as stated in 
Sec. 46.222 and whether the cigarettes have export markings as stated 
in Sec. 46.203. The following chart provides the type of cigarette and 
method to use to determine quantities:

------------------------------------------------------------------------
         Type or kind                       Inventory method
------------------------------------------------------------------------
Small cigarettes (Class A)...  Count the:
                                 Number of cigarettes
                                without export markings.
                                 Number of cigarettes
                                with export markings.
Large cigarettes (Class B)...  Count the:
                                 Number of large
                                cigarettes 6.5 or less in
                                length without export markings.
                                 Number of large
                                cigarettes 6.5 or less in
                                length with export markings.
                                 Number of each size
                                of large cigarettes more than 6.5 in length without export markings.
                                 Number of each size
                                of large cigarettes more than 6.5 in length with export markings.
------------------------------------------------------------------------

    (b) Date. Date(s) the inventory was taken.
    (c) Name. Name of individual(s) conducting the inventory and the 
name of the person for whom the inventory was taken.
    (d) Location. Record where the inventory was taken (street address, 
city and State).
    (e) Time. The physical inventory must be taken between the dates 
shown in Sec. 46.204. If you do not take the physical inventory as of 
the close of business on the last respective business days of 1999 and 
2001, the records must be reconciled. The inventory records must be 
reconciled to reflect the actual quantity of cigarettes held as of the 
first moment of January 1, 2000 and January 1, 2002, respectively. These 
records must include all supporting records of receipt and disposition.