[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: 27CFR53.133]

[Page 1008-1010]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 53_MANUFACTURERS EXCISE TAXES_FIREARMS AND AMMUNITION--Table of 
Contents
 
                Subpart K_Exemptions, Registration, Etc.
 
Sec. 53.133  Tax-free sale of articles for export, or for resale by 
the purchaser to a second purchaser for export.

    (a) In general. (1) An article subject to tax under chapter 32 of 
the Code may be sold tax free by the manufacturer, pursuant to section 
4221(a)(2) of the Code and this section, for export, or for resale by 
the purchaser to a second purchaser for export. See Sec. 53.11 for the 
meaning of the term ``exportation''. An article may be sold tax free by 
the manufacturer under the provisions of this section only if the person 
to whom the manufacturer sells the article intends either to export the 
article or to resell it to a person who intends to export it. An article 
may not be sold tax free under the provisions of this section by a 
manufacturer to a purchaser for resale to a second purchaser which does 
not intend to export the article itself but plans to resell it to a 
third purchaser for export. See section 6416(b)(2)(A) of the Code and 
Sec. 53.177 for the circumstances under which credit or refund of tax 
is available where tax-paid articles are exported from the United 
States.
    (2) If an article, otherwise taxable under chapter 32 of the Code:
    (i) Is sold tax free by the manufacturer pursuant to section 
4221(a)(2) of the Code and this section, and
    (ii) Is returned subsequently to the United States in an unused and 
undamaged condition,

then the importer is liable for the tax imposed by chapter 32 of the 
Code on the subsequent sale or use of the article in the United States. 
The provisions of this paragraph (a)(2) of this section may be 
illustrated by the following examples:

    Example (1). Q, a U.S. manufacturer of shells and cartridges, 
previously sold shells and cartridges to R, a company in Canada. The 
sale was tax free under section 4221(a)(2). Prior to use, R sold the 
shells and cartridges to S, who imports the articles into the United 
States and sells them. The sale of the shells and cartridges subjects S 
to an excise tax liability under section 4181.
    Example (2). X, a U.S. firearms manufacturer, sold a rifle to Y 
company in France. The sale was tax free under section 4221(a)(2). The 
rifle was sold by Y to W, an individual in the City of Nice, France. 
After initial use, W resold the rifle to X. X returned the rifle to the 
United States where it was resold. The resale of the rifle by X does not 
subject X to an excise tax liability under section 4181.

    (b) Sales or resales to a foreign purchaser for export. In the case 
of sales or resales to a foreign purchaser for export, if the first or 
the second purchaser is located in a foreign country or possession of 
the United States,

[[Page 1009]]

such purchaser is not required to register as provided in section 
4222(a) of the Code and Sec. 53.140. To establish the right to sell 
articles tax free for export to a purchaser who is not registered and 
who is located in a foreign country or a possession of the United 
States, the manufacturer must obtain from such purchaser at the time 
title to the article passes or at the time of shipment, whichever is 
earlier, either:
    (1) A written order or contract of sale showing that the 
manufacturer is to ship the article to a foreign destination; or
    (2) Where delivery by the manufacturer is to be made within the 
United States, a statement from the purchaser showing:
    (i) That the article is purchased either to fill existing or future 
orders for delivery to a foreign destination or for resale to another 
person engaged in the business of exporting who will export the article, 
and
    (ii) That such article will be transported to its foreign 
destination in due course prior to use or further manufacture and prior 
to any resale except for export. See section 4221(b) of the Code and 
paragraphs (c) and (d) of this section for requirements as to timely 
proof of exportation and cessation of the exemption for export unless 
the evidence to show actual exportation has been received by the 
manufacturer.
    (c) Cessation of exemption. The exemption provided in section 
4221(a)(2) of the Code and paragraph (a) of this section for an article 
sold by the manufacturer for export or for resale by the purchaser to a 
second purchaser for export shall cease to apply on the first day 
following the close of the 6-month period which begins on the date of 
the sale of the article by the manufacturer, or the date of shipment of 
the article by the manufacturer, whichever is earlier, unless within the 
6-month period the manufacturer receives proof, in the form prescribed 
by paragraph (d) of this section, that the article was actually 
exported. If, on the first day following the close of the 6-month 
period, the proof has not been received, the manufacturer shall become 
liable for tax at that time at the rate in effect when the sale was made 
but otherwise in the same manner as if the article had been sold by it 
on such first day at a taxable price equivalent to that at which the 
article was actually sold.
    (d) Proof of exportation. (1) Exportation may be evidenced by:
    (i) A copy of the export bill of lading issued by the delivering 
carrier,
    (ii) A certificate by the agent or representative of the export 
carrier showing actual exportation of the article,
    (iii) A certificate of landing signed by a customs officer of the 
foreign country to which the article is exported,
    (iv) Where the foreign country has no customs administration, a 
statement of the foreign consignee showing receipt of the article, or
    (v) Where a department or agency of the United States Government is 
unable to furnish any one of the foregoing four types of proof of 
exportation, a statement or certification on the department or agency 
stationery, executed by an authorized officer, that the listed or 
identified articles have, in fact, been exported.
    (2) In any case where the manufacturer is not the exporter, the 
manufacturer must have in its possession a statement from the vendee to 
whom the manufacturer sold the article stating the following:
    (i) Date statement was executed.
    (ii) Name and address of manufacturer's vendee (if other than the 
person executing statement).
    (iii) Certificate of registry number held by vendee.
    (iv) Specify article(s) purchased tax-free, by whom purchased, and 
date of purchase.
    (v) Statement that article(s) was either exported in due course by 
the vendee or was sold to another person who in due course exported the 
article(s).
    (vi) Name and address of vendee who will maintain possession of the 
proof of exportation documents, description of the documents, and 
statement that vendee will maintain documents for 3 years and make them 
available to ATF for inspection.
    (vii) Statement that a previous statement has not been executed in 
respect of the articles covered by this statement and that fraudulent 
use of this

[[Page 1010]]

statement may subject person executing statement and all parties making 
fraudulent use of statement to all applicable criminal penalties under 
the Code.
    (viii) Name, signature, title, and address of individual executing 
certificate.
    (3) The statement executed and signed by the manufacturer's vendee, 
as provided in paragraph (d)(2) of this section, may be executed with 
respect to any one or more articles purchased tax free from a 
manufacturer and exported within the 6-month period prescribed in 
section 4221(b)(2) of the Code and paragraph (c) of this section. Such 
statement shall be kept for inspection by the appropriate ATF officer as 
provided in section 6001 of the Code.
    (4) ATF I 5600.36. A preprinted statement, ATF I 5600.36, Statement 
of Manufacturer's Vendee, is available from the Bureau's Distribution 
Center which, when completed, contains all necessary information for a 
properly executed statement. Extra copies of ATF I 5600.36 may be 
reproduced as needed.

[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-344, 58 
FR 40354, July 28, 1993; T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-
380, 61 FR 37006, July 16, 1996]