Under the Internal Revenue Code (IRC)
at 26 U.S.C. 5051, Federal excise tax is imposed on beer removed
from domestic breweries for consumption or sale. However, under the
IRC at 26 U.S.C. 5053, brewers may remove beer without payment of
tax for export purposes, subject to regulations prescribed by the
Secretary of the Treasury. As such, the TTB regulations in 27 CFR
part 28 allow brewers to remove beer without payment of tax for
export to a foreign county, use as supplies on certain vessels or
aircraft, transfer to a foreign trade zone for export, or shipment
to U.S. armed forces stationed overseas. Those regulations also
require brewers to give notice of each such removal on form TTB F
5130.12. Or, brewers may apply to TTB to use an alternative
procedure to report beer removed for export purposes via a monthly
summary report, provided that the brewer completes the notification
section of TTB F 5130.12 for each removal and maintains the form
and the related supporting export verification records at their
premises. This collection request is necessary to protect the
revenue as TTB uses the required information to account for beer
removed without payment of tax for export purposes and ensure that
such beer is not diverted into the taxable domestic
market.
US Code:
26
USC 5053 Name of Law: Internal Revenue Code
Program changes: Previously,
TTB reported only one information collection under this collection
request, Beer for Exportation, with each such removal reported to
TTB on form TTB F 5130.12. However, this did not clearly account
for the alternative procedure under which brewers submit a monthly
summary report of such removals to TTB while maintaining records
documenting each individual removal at their premises. Therefore,
as a matter of agency discretion and for purposes of transparency,
TTB is now dividing this collection request into two information
collections: (1) Beer for Exportation (reported on TTB F 5130.12
per the TTB regulations in 27 CFR part 28 noted above in Question
1), and (2) Beer for Exportation Monthly Summary Report and
Recordkeeping Alternate Procedure (as described in TTB Industry
Circular 2004–3). As a result of this program change, for the Beer
Exportation information collection filed on TTB F 5130.12, TTB is
reporting 25 fewer annual respondents, resulting in an decrease of
4,520 responses and 7,458 annual burden hours for that information
collection. For the monthly summary report and recordkeeping
alternative procedure, TTB is reporting 80 annual respondents, each
making 2 reports per month at 3 hours per response (2 hours of
recordkeeping and 1 hour of reporting), resulting in the addition
of 1,920 responses and 5,760 annual burden hours. Taken together,
for the overall information collection request, these program
changes result in the addition of 55 respondents but an overall
decrease of 2,600 responses and 1,698 annual burden hours. This
reduction in the collection request’s overall burden results from
the addition of the monthly summary report and recordkeeping
alternate procedure, which allows brewers who make a large number
of removals of beer without payment of tax for export purposes to
report such removals less frequently—on a monthly basis instead of
on a per-removal basis.
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 5130.12 Beer for Exportation
TTB Industry Circular 2004-3.htm
1513-0114 Supporting Statement (02-2019).docx
Beer Export Documentation and Monthly Summary Report Alternate Procedure