[Code of Federal Regulations]
[Title 27, Volume 2]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR41.101]

[Page 78-79]
 
            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 
 
Subpart G_Puerto Rican Tobacco Products and Cigarette Papers and Tubes, 
                     Brought Into the United States
 
Sec.  41.101  General.


    (a) Tobacco products and cigarette papers and tubes manufactured in 
Puerto Rico which are brought into the United States and withdrawn for 
consumption or sale are subject to the tax imposed by 26 U.S.C. 7652(a), 
at the rates set forth in 26 U.S.C. 5701.
    (b) The excise taxes collected on tobacco products and cigarette 
papers and tubes manufactured in Puerto Rico are covered into the 
Treasury of Puerto Rico. Tobacco products and cigarette papers and tubes 
are considered as manufactured in Puerto Rico for purposes of 26 U.S.C. 
7652(a)(3) if the sum of the cost or value of the materials produced in 
Puerto Rico, plus the direct costs of processing operations performed in 
Puerto Rico, equals or exceeds 50 percent of the value of the product 
when it is brought into the United States.

[[Page 79]]

    (c) The excise tax on tobacco products and cigarette papers and 
tubes of Puerto Rican manufacture may be prepaid in Puerto Rico prior to 
shipment of such articles to the United States in accordance with Sec.  
41.105. In the case of tobacco products such tax may be paid in Puerto 
Rico on the basis of a semi-monthly return in accordance with the 
applicable provisions of this subpart.

(68A Stat. 907, as amended, 72 Stat. 1417, 1418, as amended (26 U.S.C. 
7652, 5703, 5704))

[T.D. ATF-206, 50 FR 15888, Apr. 23, 1985, as amended by T.D. ATF-232, 
51 FR 28085, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. 
ATF-246, 52 FR 669, Jan. 8, 1987; T.D. ATF-422, 64 FR 71950, Dec. 22, 
1999. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 
26, 2004]

   Prepayment of Tax in Puerto Rico on Tobacco products and Cigarette 
                            Papers and Tubes