[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: 27CFR41.85]

[Page 76-77]
 
            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 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

[[Page 77]]

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 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]