1513-0026 Law and Regs.

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1513-0026

26 U.S.C.

§ 5706. Drawback of tax

There shall be an allowance of drawback of tax paid on tobacco products and cigarette papers and tubes, when shipped from the United States, in accordance with such regulations and upon the filing of such bond as the Secretary shall prescribe.

27 CFR

Sec. 44.1 Exportation of tobacco products, and cigarette papers and tubes, without payment of tax, or with drawback of tax.

This part contains the regulations relating to the exportation

(including supplies for vessels and aircraft) of tobacco products and

cigarette papers and tubes, without payment of tax; the qualification

of, and operations by, export warehouse proprietors; and the allowance

of drawback of tax paid on tobacco products, and cigarette papers and

tubes exported.

[T.D. 6871, 31 FR 48, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr.

15, 1975, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D.

ATF-243, 51 FR 43194, Dec. 1, 1986]

Sec. 44.221 Application of drawback of tax.

Allowance of drawback of tax shall apply only to tobacco products,

and cigarette papers and tubes, on which tax has been paid, when such

articles are shipped to a foreign country, Puerto Rico, the Virgin

Islands, or a possession of the United States. Such drawback shall be

allowed only to the person who paid the tax on such articles and who

files claim and otherwise complies with the provisions of this subpart.

(72 Stat. 1419, 68A Stat. 908; 26 U.S.C. 5706, 7653)

[T.D. 6871, 31 FR 55, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr.

15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D.

ATF-243, 51 FR 43194, Dec. 1, 1986]

Sec. 44.222 Claim.

Claim for allowance of drawback of tax, under this subpart, must be

filed on Form 5620.7. Such claim must be filed in sufficient time to

permit the appropriate TTB officer to detail an appropriate TTB officer

to inspect the articles and supervise the affixture of a label or notice bearing the legend ``For Export With Drawback of Tax.'' Upon receipt of a claim supported by satisfactory bond, as required by this subpart, an appropriate TTB officer will proceed to the place where the articles involved are held and there perform the functions required in Sec. 44.224.

[T.D. ATF-480, 67 FR 30803, May 8, 2002]

Sec. 44.224 Inspection by an appropriate TTB officer.

(a) Examination. An appropriate TTB officer will examine the tobacco products, and cigarette papers and tubes listed on TTB Form 5620.7. Such officer will verify the accuracy of the schedule of such articles on TTB Form 5620.7.

(b) Label or notice. If the tax on such articles has been paid by

return, the appropriate TTB officer must be satisfied that the articles

have in fact been taxpaid and each package bears the label or notice

required by Sec. 44.222.

(c) Shipping containers. The appropriate officer will supervise the

packing of such articles in shipping containers. Each container must be

numbered and have affixed to it the notice:

Drawback of tax claimed on contents.

Sale, consumption, or use in U.S. prohibited.

(d) Disposition of TTB Form 5620.7. After the appropriate TTB

officer completes the report of inspection on TTB Form 5620.7, such

officer will return two copies to the claimant and send a copy to the

TTB office listed on the form.

(e) Release. After executing the report of inspection on TTB Form

5620.7, the appropriate TTB office will release the shipment to the

claimant for delivery to the port of exportation.

[T.D. ATF-480, 67 FR 30803, May 8, 2002]

Sec. 44.225 Delivery of tobacco products, or cigarette papers or tubes for export other than by parcel post.

The claimant, upon release of the tobacco products, or cigarette

papers or tubes by the appropriate TTB officer for exportation with

benefit of drawback of tax under this subpart, shall be responsible for

delivery of such articles to the port of exportation for customs

inspection, supervision of lading, and clearance of the articles. The

claimant shall file with the district director of customs at the port of exportation the two copies of Form 5620.7 returned to the claimant by the appropriate TTB officer in accordance with Sec. 44.224. Such copies shall be filed in sufficient time prior to lading to permit customs inspection and supervision of lading of the tobacco products, or cigarette papers or tubes.

(72 Stat. 1419; 26 U.S.C. 5706)

[T.D. 6961, 33 FR 9493, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999]

Sec. 44.226 Delivery of tobacco products, and cigarette papers and tubes for export by parcel post.

Where the tobacco products, and cigarette papers and tubes are to be shipped by parcel post to a destination in a foreign country, Puerto

Rico, the Virgin Islands, or a possession of the United States, a waiver of his right to withdraw such articles from the mails shall be stamped or written on each shipping container and be signed by the claimant, after which the claimant shall present the shipment to the post office. The claimant shall request the postmaster or his agent to execute the certificate of mailing on the copy of the claim, Form 5620.7, returned to the claimant by the appropriate TTB officer in accordance with Sec. 44.224. When so executed by the postal authorities, the Form 5620.7 shall be transmitted at once to the appropriate TTB officer with whom the form was previously filed.

(72 Stat. 1419; 26 U.S.C. 5706)

[T.D. 6871, 31 FR 55, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr.

15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D.

ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-424, 64 FR 71933, Dec. 22,

1999]

Sec. 44.227 Customs procedure.

The customs officer shall satisfy himself that the tobacco products, and cigarette papers and tubes described on the Form 5620.7 and those inspected by him are the same and shall note on the form any

discrepancy. After having inspected the articles and supervised the

lading thereof on the export carrier, the customs officer shall complete and sign the certificate of inspection and lading on both copies of Form 5620.7 and deliver or transmit such copies to the office of his district director of customs for further processing. After clearance from the port of the export carrier on which the articles are laden, the district director of customs shall execute the certificate of exportation on both copies of Form 5620.7. The district director of customs shall retain one copy of the form for his records and transmit the other copy to the appropriate TTB officer.

(72 Stat. 1419; 26 U.S.C. 5706)

[T.D. 6961, 33 FR 9493, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-480, 67 FR 30803, May 8, 2002]

Sec. 44.232 Allowance of claim.

On receipt of the executed Form 5620.7 from the district director of customs, the appropriate TTB officer will allow or disallow the claim in accordance with existing law and regulations. If the claim is not allowed in full the appropriate TTB officer will notify the claimant, in writing, of the reasons for any disallowance.

(72 Stat. 1419; 26 U.S.C. 5706)

[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,

as amended by T.D. ATF-424, 64 FR 71933, Dec. 22, 1999]