[Federal Register Volume 61, Number 115 (Thursday, June 13, 1996)]
[Proposed Rules]
[Pages 30021-30023]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14852]
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DEPARTMENT OF THE TREASURY
27 CFR Part 250
[Notice No. 825]
RIN: 1512-AB50
Liquors and Articles From Puerto Rico and the Virgin Islands
(1512-AB50)
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
the Treasury.
ACTION: Advance notice of proposed rulemaking.
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SUMMARY: ATF is considering the revision and recodification of the
regulations regarding liquors and articles (hereinafter ``alcoholic
products'') which are brought into the United States from Puerto Rico
or the Virgin Islands. The purpose of the proposed revision/
recodification is to update and simplify the regulations in 27 CFR Part
250 and to reissue those regulations as part of the same chapter. ATF
is issuing this advance notice to solicit comments on its proposal to
eliminate application and transaction forms required to be submitted by
persons who bring alcoholic products into the United States from Puerto
Rico.
Comments are also being solicited on proposals to coordinate with
the U.S. Customs Service to reduce duplicate efforts involving
shipments of merchandise from Puerto Rico to the United States. ATF
would also like to receive comments regarding other suggestions for
reducing or eliminating unnecessary regulatory burdens on proprietors
in both Puerto Rico and the United States while continuing to provide
adequate protection to the revenue.
DATES: Written comments must be received on or before September 11,
1996.
ADDRESSES: Comments must be submitted to the Chief, Wine, Beer, and
Spirits Branch, P.O. Box 50221, Washington, DC 20091-0221. ATTN Notice
No. 825.
FOR FURTHER INFORMATION CONTACT: Tami Light, Wine, Beer and Spirits
Branch, Bureau of Alcohol, Tobacco and Firearms, Washington, DC 20226,
(202) 927-8210.
[[Page 30022]]
SUPPLEMENTARY INFORMATION:
Background
Pursuant to section 7652 of the Internal Revenue Code of 1986,
alcoholic products of Puerto Rican manufacture which are brought into
the United States for consumption or sale, and alcoholic products
coming into the United States from the Virgin Islands, are subject to a
tax equal to the tax imposed on similar products of domestic
manufacturer.
Under section 5232, distilled spirits brought into the United
States in bulk containers from Puerto Rico or the Virgin Islands may be
withdrawn from Customs custody and transferred to the bonded premises
of a distilled spirits plant without payment of tax.
On September 8, 1992, ATF published in the Federal Register an
advanced notice of proposed rulemaking, Notice No. 751, 57 FR 40885, in
order to solicit comments on its proposal to review and update the
regulations pertaining to shipments of alcoholic products from Puerto
Rico or the Virgin Islands to the United States, and plans to recodify
and reissue such regulations now in 27 CFR part 250 as part 26 of the
same chapter. In response to Notice No. 751, two favorable comments
were received from the Jim Beam Co. (Beam) and the National Association
of Beverage Importers, Inc. In general, both of these comments
supported ATF's proposed simplification of application and
recordkeeping requirements. In addition, Beam supported ATF's proposed
coordination with the U.S. Customs Service to streamline regulation of
Puerto Rican products. Given ATF's continued interest in these
proposals, the relative lack of comments received during its initial
airing, and the length of time since these issues were first
considered, ATF is reairing its proposal in its entirety to give
industry and concerned citizens another opportunity to comment.
Proposals
ATF would like to reorganize the regulations to eliminate often
lengthy duplication of requirements that apply equally to operations in
Puerto Rico and the Virgin Islands. We are considering deleting many
regulatory requirements which may be unnecessary.
In updating the regulations, primary emphasis will be given to the
simplification of procedures for the taxpayment and shipment of
alcoholic products from Puerto Rico to the United States. ATF is also
considering proposals to coordinate with the U.S. Customs Service to
reduce duplicate efforts at the port of arrival in the United States
when such products are shipped from Puerto Rico, however, the
responsibilities of Customs with respect to shipments from the Virgin
Islands would remain unchanged.
Under current regulations, before distilled spirits, wine or beer
may be shipped from Puerto Rico to the United States, an application on
ATF Form 5110.51, Application, Permit and Report-Wine and Beer (Puerto
Rico), must be submitted and a permit received to verify computation of
the internal revenue tax. After tax determination, a second application
and permit on ATF Form 487-B (5170.5) Application and Permit to Ship
Liquors and Articles of Puerto Rican Manufacturer Taxpaid to the United
States, is required in order to ship the taxpaid or tax determined
products to the United States.
ATF is considering ways to reduce paperwork and simplify the
procedures for shipping distilled spirits, beer or wine from Puerto
Rico to the United States. We would like comments on the following
proposals:
(1) Should the regulations be amended to permit the proprietor of
qualified premises in Puerto Rico to maintain a record of tax
determination in lieu of the application and permit to compute the tax?
ATF is proposing that, in lieu of the initial application and permit
currently required to compute the tax, a record of tax determination be
kept by the proprietor containing sufficient information to allow an
ATF officer to verify the tax liability represented by the document.
(2) Should the regulations be amended to allow such record of tax
determination to be an invoice, bill of lading, or other commercial
document which would contain the necessary data elements?
(3) If ATF adopts the above proposals what additional safeguards to
the revenue would be necessary?
(4) Do the current provisions in part 250 adequately address the
bulk shipment of distilled spirits from Puerto Rico to the United
States? ATF is interested in whether or not the regulations reflect the
current technology or shipment and distribution practices in this area.
(5) In this advance notice, ATF would like to solicit comments on
specific ways in which it could reduce paperwork, simplify existing
procedures and eliminate unnecessary regulations in any area concerning
Puerto Rico or the Virgin Islands that is currently covered in part
250, while continuing to maintain adequate safeguards to the revenue.
(6) ATF would like specific comments on the experience of the
industry with respect to any duplicative regulatory efforts by ATF and
the U.S. Customs Service on shipments of distilled spirits from Puerto
Rico to the United States.
(7) Finally, under the current regulations, ATF may grant an
industry member's request for an alternate method or procedure as a
variance from some regulatory requirements. ATF is interested in
comments from industry members concerning their experience with such
variances and whether these regulations should be revised to
incorporate some of the practices authorized by existing variances.
Public Participation
ATF requests comments from all interested persons. All comments
received on or before the closing date will be carefully considered.
Comments received after the closing date will be given the same
consideration if it is practical to do so, but assurance of
consideration cannot be given except as to comments received on or
before the closing date.
ATF will not recognize any material or comments as confidential.
All comments submitted in response to this advance notice will be
available for public inspection during normal business hours at: ATF
Public Reading Room, room 6480, 650 Massachusetts Avenue NW.,
Washington, DC. Any material that the commenter considers confidential
or inappropriate for disclosure to the public should not be included in
the comment. The name of the person submitting a comment is not exempt
from disclosure.
Executive Order 12866
It has been determined that this proposed regulation is not a
significant regulatory as defined by Executive Order 12866.
Accordingly, this proposal is not subject to the analysis required by
this Executive Order.
Drafting Information: The principal author of this document is
Tami Light of the Wine, Beer and Spirits Branch, Bureau of Alcohol,
Tobacco and Firearms.
List of Subjects in 27 CFR Part 250
Administrative practice and procedure, Alcohol and alcoholic
beverages, Authority delegations, Beer, Customs duties and inspection,
Electronic fund transfers, Excise taxes, Liquors, Packaging and
containers, Puerto Rico, Reporting and recordkeeping requirements,
Surety bonds, Transportation, Virgin Islands, Warehouses, Wine.
[[Page 30023]]
Authority: This advance notice of proposed rulemaking is issued
under the authority in 26 U.S.C. 7805.
Signed: May 17, 1996.
Bradley A. Buckles,
Acting Director.
Approved: May 24, 1996.
John P. Simpson.
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 96-14852 Filed 6-12-96; 8:45 am]
BILLING CODE 4810-31-U
