DEPARTMENT OF THE TREASURY
ALCOHOL AND TOBACCO TAX AND TRADE BUREAU
Supporting Statement - Information Collection Request
OMB Control Number 1513-0078
TTB Form 5200.3 Application for Permit to Manufacture Tobacco Products or
Processed Tobacco or to Operate an Export Warehouse
TTB Form 5200.16 Application for Amended Permit to Manufacture Tobacco
Products or Processed Tobacco or to Operate an Export
Warehouse
TTB Form 5230.4 Application for Permit to Import Tobacco Products or Processed
Tobacco
TTB Form 5230.5 Application for Amended Permit to Import Tobacco Products or
Processed Tobacco
A. JUSTIFICATION
1. What are the circumstances that make this collection of information necessary and what legal or administrative requirements necessitate the collection?
On February 4, 2009, President Obama signed into law the Children’s Health Insurance Program Reauthorization Act of 2009, Pub. L. 111-3, 123 Stat. 8 (“the Act”). Section 702 of the Act included amendments to the Internal Revenue Code of 1986 (IRC) to extend permit, inventory, reporting, and recordkeeping requirements to manufacturers and importers of processed tobacco even though such processed tobacco is not subject to excise tax under the IRC.
26 U.S.C. 57l2 states that every person, before commencing business as a manufacturer or importer of tobacco products or processed tobacco, or as an export warehouse proprietor, and at such other time as the Secretary shall by regulation prescribe, shall make application for the permit provided for in 26 U.S.C. 57l3.
The proprietor completes and submits TTB F 5200.3 or 5230.4 to obtain a permit. When the need arises, a proprietor will complete and submit TTB F 5200.16 or
TTB F 5230.5 to inform TTB of changes affecting the accuracy of the information on a current permit and to obtain a new, corrected permit. On occasion, the applicant may be asked to submit additional supporting documentation together with these TTB forms. The additional documentation may consist of corporate documents, articles of partnership or association, a trade name certificate and/or a description and diagram of premises. When necessary, additional supporting documentation must be furnished to determine whether the applicant is entitled to and will be issued a permit or an amended permit. All such documentation will become a part of the application for permit or amended permit.
The statutory authority for this submission is prescribed in the following regulations:
27 CFR 40.62 27 CFR 41.191 27 CFR 44.82
27 CFR 40.63 27 CFR 41.193 27 CFR 44.83
27 CFR 40.64 27 CFR 41.194 27 CFR 44.84
27 CFR 40.65 27 CFR 41.195 27 CFR 44.85
27 CFR 40.69 27 CFR 41.197 27 CFR 44.88
27 CFR 40.73 27 CFR 41.202** 27 CFR 44.91
27 CFR 40.91 27 CFR 41.220 27 CFR 44.101
27 CFR 40.92 27 CFR 41.221 27 CFR 44.102
27 CFR 40.93 27 CFR 41.222 27 CFR 44.103
27 CFR 40.101 27 CFR 41.223 27 CFR 44.104
27 CFR 40.102 27 CFR 41.224 27 CFR 44.105
27 CFR 40.103 27 CFR 41.225 27 CFR 44.106
27 CFR 40.104 27 CFR 41.226 27 CFR 44.107
27 CFR 40.111 27 CFR 41.227 27 CFR 44.108
27 CFR 40.112 27 CFR 41.228 27 CFR 44.109
27 CFR 40.113 27 CFR 41.232* 27 CFR 44.111
27 CFR 40.114 27 CFR 41.233* 27 CFR 44.112
27 CFR 40.492* 27 CFR 41.234*
27 CFR 40.494* 27 CFR 41.235*
27 CFR 40.495* 27 CFR 41.236*
27 CFR 40.496* 27 CFR 41.237*
27 CFR 40.497* 27 CFR 41.242*
27 CFR 40.511* 27 CFR 41.251*
27 CFR 40.512* 27 CFR 41.252*
27 CFR 40.513* 27 CFR 41.253*
* New regulatory sections included in a temporary rule implementing provisions of the Act.
** Revised regulatory section in the temporary rule.
2. How, by whom and for what purpose is this information used?
TTB National Revenue Center personnel use the information requested on
TTB F 5200.3 and TTB F 5230.4 and any additional supporting documentation to
identify applicants for a permit under 26 U.S.C. 5712, the location and mailing address of their permit premises and of their principal place of business, if different, the trade names under which the business is to be operated, and the type of permit being applied for. Item 8 of TTB F 5200.3 includes space in which an applicant may be required to describe the business premises. When required, this information is used for two purposes:
(1) to determine the exact location of the permit premises (since the premises may consist of less than an entire building, a street address by itself may not be sufficient to describe the location); and
(2) to determine whether the premises are, as required by 26 U.S.C. 5712(1), adequate to protect the revenue.
Once the information on TTB F 5200.3 or TTB F 5230.4 has been reviewed, it is used to prepare a permit.
TTB F 5200.16 and TTB F 5230.5 and any additional supporting documentation provide the same type of information as TTB F 5200.3 and TTB F 5230.4. They are used to prepare amended permits when there has been a change affecting the accuracy of the original permit. The applicant for an amended permit completes only those portions of TTB F 5200.16 and TTB F 5230.5, and includes additional supporting documentation necessary for, identifying the applicant and describing changes that have occurred at the premises. Therefore, the burden on the respondent is less than that of TTB F 5200.3 and TTB F 5230.4. TTB will use these forms to ensure proper monitoring of the tobacco products and processed tobacco industry.
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?
TTB will consider the use of improved technology on a case-by-case basis,
4. What efforts are used to identity duplication? Why can’t any similar information
already available be used or modified for use for the purposes described in Item 2
above?
These forms collect information that is pertinent to each respondent and applicable to the specific operations of each applicant. As far as we can determine, similar information is not available elsewhere.
5. If this collection of information impacts small businesses or other small entities,
what methods are used to minimize burden?
The type and amount of information requested by the TTB forms are the minimum necessary to determine if a permit or amended permit can be issued. The amount of information that a small business will have to collect and file with TTB is normally less than a larger, more complex 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?
If this information is not collected through the use of TTB Forms 5200.3, 5200.16,
5230.4, and 5230.5 and the supporting documentation, TTB will not be able to adequately identify persons who engage in the business and those who should be prohibited from engaging in the business through the denial of a permit for the reasons set forth under 26 U.S.C. 5712. Consequently, TTB would be unable to protect the revenue. All of these TTB activities are mandated by Title 26 U.S.C., Chapter 52.
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?
The general public will be notified of this information collection in a temporary rule and notice of proposed rulemaking published in the Federal Register. The notice will solicit comments from the general public.
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. 26 U.S.C. 6103 and
5 U.S.C. 552 protects the confidentiality of the information collected, except where noted.
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?
TTB Form 5200.3 TTB Form 5220.4
Number of respondents – 173 Number of respondents – 586
Total annual responses – 173 Total annual responses – 586
Annual Hours Requested – 346 Annual Hours Requested – 1172
TTB Form 5200.16 TTB Form 5220.5
Number of respondents – 173 Number of respondents – 586
Total annual responses – 173 Total annual responses – 586
Annual Hours Requested – 173 Annual Hours Requested – 586
Total number of respondents – 1,518
Total annual responses – 1,518
Total Annual Hours – 2,277
Current OMB inventory – 1,130
The changes to the form arise from the extension of the permit requirement to those engaged in the business of importing or manufacturing processed tobacco by Public Law 111-3.
13. What is the estimated total annual cost burden to respondents or recordkeepers
resulting from this collection of information?
TTB Form 5200.3 TTB Form 5230.4
Capital/startup costs – Not applicable Capital/startup costs – Not applicable
Salary - $4,500 Salary - $40,500
Clerical & filing costs – $450 Clerical & filing costs – $4,050
Overhead – $595 Overhead – $4,550
Total - $5,545 Total - $49,100
TTB Form 5200.16 TTB Form 5230.5
Capital/startup costs – Not applicable Capital/startup costs – Not applicable
Salary - $1,350 Salary - $4,500
Clerical & filing costs – $135 Clerical & filing costs – $450
Overhead – $250 Overhead – $600
Total - $1,735 Total - $5,550
Total estimate of annual cost for all forms
Capital/startup costs – Not applicable
Salary - $50,850
Clerical & filing costs – $5,085
Overhead – $4,995
Total - $61,930
14. What is the annualized cost to the Federal Government?
TTB Form 5200.3 TTB Form 5230.4
Printing & Distribution - $100 Printing & Distribution - $1,000
Salary(review, inspection, Salary(review, inspection,
Supervisory) - $4,500 Supervisory) - $648,000
Clerical & filing costs – $450 Clerical & filing costs – $64,800
Overhead – $500 Overhead – $71,280
Total - $5,550 Total - $785,080
TTB Form 5200.16 TTB Form 5230.5
Printing & Distribution - $100 Printing & Distribution - $300
Salary(review, inspection, Salary(review, inspection,
Supervisory) - $450 Supervisory) - $36,000
Clerical & filing costs – $45 Clerical & filing costs – $3,600
Overhead – $50 Overhead – $4,000
Total - $645 Total - $43,900
Total Printing & Distribution - $1,500
Total Salary – $688,950
Clerical & filing costs – $68,895
Overhead – $75,830
Total estimate of Federal government’s cost for all forms - $835,175
15. What is the reason for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-I?
The program change reported in Items 13 of the OMB Form 83-I is made in the implementation of the Act. There is an increase in the number of respondents, with the addition of the Processed Tobacco Manufacturers.
16. Outline plans for tabulation and publication for collections of information whose results will be published.
We will not publish the results of this collection.
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. Collections of Information Employing Statistical Methods.
This collection does not employ statistical methods.
| File Type | application/msword |
| Author | ATF |
| Last Modified By | TTB |
| File Modified | 2009-07-29 |
| File Created | 2009-04-30 |