1513-0046 Ss

-4-

DEPARTMENT OF THE TREASURY

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU

Supporting Statement – Information Collection Requirement

OMB Control Number – 1513-0046

TTB F 5110.38 – Formulas for Distilled Spirits Under the Federal Alcohol

Administration Act

A. Justification

1. What are the circumstances that make this collection of information necessary and what legal or administrative requirements necessitate the collection?

Any manufacture of a distilled spirits product which involves the blending, mixing, purifying or, refining, or a change in character, composition, class, or type, of spirits cannot be conducted by the proprietor until a formula is submitted to and approved by TTB. The formula, filed on TTB F 5110.38, must list all ingredients, and in some cases the process used. Under the Act, all spirits in containers or a capacity of one wine gallon or less, except anhydrous (water removed) alcohol and alcohol which may be withdrawn free of tax under the internal revenue laws, are considered beverage distilled spirits. Formula requirements and description of the processing requirements which can change character, composition, class, or type of spirits are listed in 27 CFR Part 5. The following statutes and regulatory sections also require the collection of information contained in

TTB F 5110.38:

26 U.S.C. 5222; 26 U.S.C. 5223; 26 U.S.C. 5555; 26 U.S.C. 5232; and

27 U.S.C. 205(e).

27 CFR 5.27; 27 CFR 19.324; 27 CFR 19.641; 27 CFR 26.50;

27 CFR 26.54; and 27 CFR 26.197.

2. How, by whom, and for what purpose is this information used?

TTB F 5110.38 is used during inspection and audits as our officers compare the formulas to the manufacturing records for compliance with the approved formula and payment of the proper tax. The information on the form assures that the product is being manufactured in accordance with the approved formula and the proper tax is being paid.

3. To what extent does this collection of information involve the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology? What consideration is given to use information technology to reduce burden?

The form requires a volume of information collected that is unique to each respondent and applicable only to the needs of each respondent. The use of improved technology for recording the information will be considered by TTB on a case-by-case basis. TTB F 5110.38 is available on the TTB website. However, at this time the form cannot be submitted electronically.

4. What efforts are used to identify duplication? Why can’t any similar information already available be used or modified for use for the purposes described in Item 2 above?

We terminated the Federal Information Locator System (FILS) Program for agency use. However, we search an agency subject classification system to identify duplication. Similar information is not available elsewhere for this information collection requirement.

5. If this collection of information impacts small businesses or other small entities, what methods are used to minimize burden?

This collection of information is not susceptible to reduced requirements for small business.

6. What consequences to Federal program or policy activities and what, if any, technical or legal obstacles to reducing burden will occur if this collection is not conducted or is conducted less frequently?

Respondent’s complete this information only as often as necessary to comply with the statute.

7. Are there any special circumstances associated with this information collection?

There are no special circumstances associated with this information collection.

8. What effort was made to notify the general public about this collection of information?

A 60-day Federal Register notice was published for this information collection on Thursday, June 8, 2006, 71 FR 33335. The notice solicited comments from the general public. TTB received no comments.

9. What decision was made to provide any payment or gift to respondents, other than reenumeration of contractors or grantees?

No payment or gift is associated with this collection.

10. What assurance of confidentiality was provided to respondents and what was the basis for the assurance in statute, regulations, or agency policy?

No specific assurance of confidentiality is provided on this form; however, the confidentiality of the information collected on this form is protected by 5 U.S.C. 552(b)(4) and 26 U.S.C. 6103.

11. What justification is there for questions of a sensitive nature?

We ask no questions of a sensitive nature.

12. What is the estimated hour burden of this collection of information?

There is no change in burden hours. There are 20 responses per 200 respondents. We estimate that it takes 1 hour per response for a total burden of 4,000 hours. Records are kept indefinitely for this information collection.

13. What is the estimated total annual cost burden to respondents or

recordkeepers resulting from this collection of information?

We do not associate any new cost with this collection.

14. What is the annualized cost to the Federal Government?

Estimates of annual cost to the Federal Government are as follows:

Printing $ 760

Distribution 120

Clerical Cost 180

Other Salary (review, 1,080

Supervisory, etc.) _______

Total $2,140

15. What is the reason for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-I?

There are no program changes or adjustments associated with this collection.

16. Outline plans for tabulation and publication for collections of information whose results will be published.

The results of this collection will not be published.

17. If seeking approval to not display the expiration date for OMB approval of this information collection, what are the reasons that the display would be inappropriate?

We will display the expiration date of OMB approval for this collection.

18. What are the exceptions to the certification statement?

There are no exceptions to the certification statement.

B. Collection of Information Employing Statistical Methods

This collection does not employ statistical methods.