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.
US Code:
26
USC 5722 Name of Law: Internal Revenue Code
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.
$27,400
No
Yes
Yes
No
No
No
Uncollected
Jesse Longbrake 202
453-2265
No
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.
Form TTB F 5250.2 Report of Removal, Transfer, or Sale of Processed Tobacco (TTB F 5250.2)
Updates to TTB F 5250.2 (07-2009).docx
TTB F 5250.2 (07-2009).pdf
Monthly Summary Report of Processed Tobacco Removals for Export