In general, chapter 51 of the Internal
Revenue Code (IRC; 26 U.S.C.) sets forth Federal excise tax rates
and application, permit, and other requirements related to alcohol
products produced in or imported into the United States. However,
while volatile fruit-flavor concentrates contain alcohol when they
are manufactured from the mash or juice of a fruit by an
evaporative process, under the IRC at 26 U.S.C. 5511, alcohol
excise tax and most other provisions of chapter 51 do not apply to
such concentrates if their manufacturers file applications, keep
records, and meet certain other requirements prescribed by
regulation for the protection of the revenue. Under the TTB
regulations in 27 CFR part 18, respondents apply to register
volatile fruit-flavor plants using form TTB F 5520.3. The TTB
regulations also require the filing of an amended TTB F 5520.3 to
report any change affecting the accuracy of the original
application, as well as the filing of letterhead applications
regarding certain volatile fruit-flavor concentrate plant matters
not covered by TTB F 5520.3. In addition, volatile fruit-flavor
concentrate manufacturers are required to maintain an ongoing
record file of all approved applications forms and letters and any
related supporting documents on or convenient to their plant
premises. TTB uses the application information and record file to
identify the persons responsible for, the location of, the
distilling equipment in, and operations conducted at a concentrate
plant in order to protect the revenue since volatile fruit-flavors
could be diverted for use as taxable alcohol beverages.
There are no program changes
associated with this information collection. As for adjustments,
due to a decrease in the number of volatile fruit-flavor
concentrate plants, TTB is decreasing the estimated number of
annual respondents and responses for this information collection
from 80 to 55, and is decreasing the estimated total annual burden
hours from 160 to 110. In addition, for clarity and consistency,
TTB is revising the title of this information collection request
from “Applications—Volatile Fruit-Flavor Concentrate Plants, TTB
REC 5520/2” to “Volatile Fruit-Flavor Concentrate
Plants—Applications and Related Records (TTB REC 5520/2).”
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.