Reports of Removal, Transfer, or Sale of Processed Tobacco

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Form TTB F 5250.2 Report of Removal, Transfer, or Sale of Processed Tobacco	Form and Instruction	Modified	Available
Updates to TTB F 5250.2 (07-2009).docx	Supplementary Document	Uploaded 2018-07-26	Available
TTB F 5250.2 (07-2009).pdf	Supplementary Document	Uploaded 2018-07-26	Available
1513-0130 Supporting Statement (08-2018).docx	Supporting Statement A	Uploaded 2018-07-26	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
231948	Monthly Summary Report of Processed Tobacco Removals for Export		New
189279	Report of Removal, Transfer, or Sale of Processed Tobacco (TTB F 5250.2)	Form and Instruction	Modified	Report of Removal, Transfer, or Sale of Processed Tobacco

ICR Details

OMB Control No: 1513-0130	ICR Reference No: 201804-1513-001
Status: Historical Active	Previous ICR Reference No: 201406-1513-006
Agency/Subagency: TREAS/TTB	Agency Tracking No: ICN 68 - 3/3
Title: Reports of Removal, Transfer, or Sale of Processed Tobacco
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/31/2018
Retrieve Notice of Action (NOA)	Date Received in OIRA: 08/15/2018
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2021	36 Months From Approved	10/31/2018
Responses	2,971	0	4,800
Time Burden (Hours)	1,613	0	2,400
Cost Burden (Dollars)	7,081	0	19,752

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Abstract: The Internal Revenue Code at 26 U.S.C. 5722 requires importers and manufacturers of tobacco products, processed tobacco, or cigarette papers and tubes to make reports containing such information, in such form, at such times, and for such periods as the Secretary by regulation prescribes. While processed tobacco is not subject to Federal excise tax under the IRC, tobacco products subject to such taxes may be manufactured using processed tobacco. To protect the revenue by minimizing diversion of processed tobacco to illegal manufacturers, TTB has issued regulations that require persons holding TTB permits as importers or manufacturers of processed tobacco or tobacco products to report all removals, transfers, or sales of processed tobacco made for export or for shipment to any domestic entity that does not hold a such a permit or a permit to operate as an export warehouse proprietor. In general, respondents must report each such shipment by the close of the next business day using form TTB F 5250.2. However, exporters may apply to TTB to report removals made for export using a monthly summary report. TTB F 5250.2 and the monthly summary report require information identifying the TTB permit holder making the processed tobacco shipment, the type and quantity of processed tobacco shipped, the person(s) purchasing (or receiving) and delivering the processed tobacco, and the destination address of the shipment.

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Authorizing Statute(s): US Code: 26 USC 5722 Name of Law: Internal Revenue Code
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	83 FR 10948	03/13/2018
30-day Notice:	Federal Register Citation:	Citation Date:
	83 FR 40651	08/15/2018
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

table that charts list of burden

IC Title	Form No.	Form Name
Monthly Summary Report of Processed Tobacco Removals for Export
Report of Removal, Transfer, or Sale of Processed Tobacco (TTB F 5250.2)	TTB F 5250.2	Report of Removal, Transfer, or Sale of Processed Tobacco

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ICR Summary of Burden

table that charts list of burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	2,971	4,800	0	85	-1,914	0
Annual Time Burden (Hours)	1,613	2,400	0	170	-957	0
Annual Cost Burden (Dollars)	7,081	19,752	0	1,020	-13,691	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Program changes: Previously, TTB has not reported the Monthly Summary Report of Processed Tobacco Removals for Export (which includes the report and its associated letterhead application) as an information collection under this collection request. Due to the low number of respondents using this alternative to the per-shipment report made on TTB F 5250.2, TTB believes this information collection is not subject to the Paperwork Reduction Act, which generally exempts information collections with fewer than 10 annual respondents from its requirements. However, as a matter of agency discretion, and for reasons of transparency, TTB now elects to include this information collection under this collection request, with the information collection containing two collection instruments: (1) the Monthly Summary Report of Processed Tobacco Removals for Export, and (2) the Letterhead Application to Use the Monthly Summary Report. While the estimated annual burden associated with the Monthly Summary Report information collection accounts for 7 respondents, 85 responses, and 170 burden hours, the addition of this collection to this request does not increase the request’s overall annual burden because, as described below, TTB is lowering the overall burden associated with this request due to a change in agency estimates. Adjustments: As for adjustments associated with this information collection request: TTB is decreasing the number of annual respondents, responses, and burden hours associated with the Reports of Removal, Sale, or Transfer of Processed Tobacco (TTB F 5250.2) portion of this information collection request. Since TTB first required this collection in 2009, TTB has reported all manufacturers and importers of tobacco products or processed tobacco as potential respondents to that collection. However, based on analysis of recent data by TTB’s National Revenue Center, which is the TTB office that processes the collected information, TTB has determined that only a small number of such TTB-regulated entities ship processed tobacco for export or for delivery to domestic entities that do not hold a TTB permit, but that each respondent makes many such shipments each year. Therefore, TTB is reducing the number of respondents making daily reports to TTB on TTB F 5250.2 from 800 respondents to 13, but is increasing the average number of annual responses per respondent from 8 to 222. These changes decrease the estimated total annual burden for the TTB F 5250.2 information collection from 4,800 responses to 2,886, and from 2,400 hours to 1,443. In addition, as a result of a re-evaluation of the costs associated with this information collection request, TTB is decreasing the costs to respondents from $19,752 to $8,549, and is decreasing the costs to the Federal Government from $104,000 to $27,400.

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Annual Cost to Federal Government: $27,400

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 08/15/2018

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