Under the Internal Revenue Code (IRC)
at 26 U.S.C. 7652(g), the provisions of 26 U.S.C. 5111–5114
providing for drawback (refund) of Federal excise taxes paid on
distilled spirits used in certain nonbeverage products—medicines,
medicinal preparations, food products, flavors, flavoring extracts,
and perfumes—also apply to such articles brought into the United
States from Puerto Rico or the U.S. Virgin Islands. In particular,
26 U.S.C. 5112 requires nonbeverage product drawback claimants to
keep the records necessary to document the information provided in
such claims, subject to regulations prescribed by the Secretary of
the Treasury. Based on those IRC authorities, the TTB regulations
at 27 CFR 26.174 and 26.310 require persons making nonbeverage
product drawback claims on eligible articles brought into the
United States from Puerto Rico or the U.S. Virgin Islands to keep
certain business, formula, and taxpayment records documenting the
data regarding the distilled spirits and articles in question
provided in such claims. Those persons must maintain the required
records at their business premises for at least 3 years, during
which time TTB may inspect the records to verify the data provided
in their claims. TTB’s verification of such nonbeverage product
drawback claims is necessary to protect the revenue and ensure
compliance with relevant statutory and regulatory
requirements.
In the past, TTB estimated that
20 respondents made an average of eight annual responses each to
this collection, and that each response took one hour to complete,
consisting of one-half hour of reporting and one-half hour of
recordkeeping. This resulted in an estimated annual burden of 160
responses and 160 hours for this collection. However, TTB finds
that this collection has no reporting requirement as it consists
solely of records maintained on a continuing basis by respondents
at their business premises, which equates to one annual response
per respondent. Therefore, the agency is revising estimates to
reflect a decrease in the estimated annual burden for this
collection, from 160 responses to 20, and from 160 hours to 20, all
of which are for recordkeeping. Also, based on recent experience,
TTB is decreasing the number of annual respondents to this
information collection, from 20 to 10, due to a change in agency
estimates. This results in further decreases in the number of
annual responses to this collection, from 20 to 10, and in the
estimated total annual burden, from 20 hours to 10.
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.
1513-0089 Supporting Statement (03-2019).docx
Records Supporting Drawback Claims on Eligible Articles Brought into the United States from Puerto Rico or the Virgin Islands (TTB REC 5530/3)