Alcohol
and Tobacco Export Documentation Procedures
To:
All Proprietors of Distilled Spirits Plants, Breweries,
Bonded Wine Premises, Tobacco Manufacturers, and Export
Warehouses
I.
Purpose
What
is the purpose of this circular?
We
are issuing this circular to announce an alternative procedure
to allow you to request approval to retain export documentation
at your premises. We have found that the alternative procedures
we have previously approved, and that you may now use, are
insufficient to protect the revenue and present considerable
administrative difficulty to the Bureau. We are offering an
alternative procedure that remedies the deficiencies in these
prior alternative procedures. For exporters who now use an
alternative procedure, this circular is our notice to you that
we rescind our approval of your current procedure, effective
November 29, 2004. If
you wish to use an alternative procedure, this new procedure is
the only alternative we will accept. You must replace any
current alternative procedure with this new procedure.
The
new alternative procedure includes these features:
You
maintain all copies of required documents at your premises.
If
you export spirits, wines, beer, or tobacco products, you must
submit a monthly report of goods exported by an electronic
spreadsheet, in a format prescribed by us.
You
must obtain acceptable proof of export within 90 days of
removal from your premises. “Proof of export”
includes all documents substantiating that the transaction is
a removal for export. We will no longer require a signature of
a U.S. Customs and Border Protection (CBP) official on TTB
forms certifying the export. Our auditors will examine your
records to verify these transactions.
If
you do not obtain proof of export, then you must pay the tax
by making an increasing tax adjustment on your next return. If
you subsequently obtain the proof of export, then you may make
a corresponding adjustment decreasing tax. We will consider
the period of removal to be the current period, so no interest
is due on the tax for these removals. Likewise, no interest
will be paid for subsequent establishment of proof.
You
may choose to use one of the procedures prescribed by
regulations, or the new alternative procedure. If you choose
to apply for this new alternative procedure, you must submit a
letterhead request to us and receive our approval in order to
retain all export documents at your approved premises instead
of sending them to our National Revenue Center. These export
documents include:
Form
5100.11, Withdrawal of Spirits, Specially Denatured Spirits,
or Wines for Exportation;
Form
5130.12, Beer for Exportation;
Form
5200.14, Notice of Removal of Tobacco Products, Cigarette
Papers, or Cigarette Tubes; and
Appropriate
proof of exportation.
Who
may apply for this alternative procedure?
You
may apply for this alternative procedure if you are a Distilled
Spirits Plant, Brewery, Bonded Wine Premises, Tobacco
Manufacturer, or Export Warehouse.
You
may not apply for this alternative procedure if you are an
exporter but not the proprietor of the bonded premises from
which the spirits or wines are withdrawn. You must still
continue to submit TTB F 5100.11 as an application to the
National Revenue Center, along with the acceptable proof of
exportation within 90 days of the date of withdrawal of the
goods.
Why
are we allowing you to vary from the requirements of the
regulations?
We
are reviewing our export regulations and procedures to
streamline our process, lessen the burden on industry, and
reduce unnecessary paperwork. Currently, each time you
export your nontaxpaid products, we require you to submit an
export notice to our National Revenue Center (see 27 CFR 28.92,
28.122, 28.142 and 44.61a). Once you export the product,
we require you to send us the appropriate documents evidencing
the export (see 27 CFR 28.40, 28.43, and 44.66). As an
alternative to current procedures, after receiving approval
from us, we will allow you to retain these documents at your
premises. We will no longer require you to submit them to us.
We believe this alternative procedure will eliminate duplicate
copies of paperwork and improve processing of export
documentation for all parties. Our authority to grant an
alternative method or procedure is in 27 CFR 28.20 and 44.72.
II.
Effect On Existing Approvals
Effective
November 29, 2004, we will cancel all existing approved export
document retention alternative procedures. If you wish to
continue to retain export documents at your premises, you must
submit a letterhead request for this new alternative procedure
and receive our approval.
III.
Request For Alternative Procedure
How
do I apply for this alternative procedure?
In
order to obtain approval to use this alternative procedure, you
must:
Complete
all information required in the attached Letterhead Request
for Alternative Procedure.
Ensure
that the individual submitting the request is authorized and
has signing authority on file with TTB. This can be obtained
by filing Form 5000.8, Power of Attorney, or TTB Form 5100.1,
Signing Authority for Corporate Officials.
Complete
a separate request for each TTB-approved permit and/or
registry.
Submit
your request to:
Paper
submissions.
Send all paper copies of the request to:
TTB National
Revenue Center Attn: Export Alternative Procedure Program
8002 Federal Office Building 550 Main Street Cincinnati,
OH 45202
Electronic
submissions.
You may submit your request in the form of an e-mail sent
to [email protected],
with your request as a Microsoft Word attachment. Please
include the name and telephone number of the person submitting
the request in the body of the e-mail. As with a paper
copy, the individual submitting the request must have signing
authority on file with TTB.
Will
TTB approve the alternative procedure for all industry members
that apply?
No,
we retain the right to require submission of the paperwork
according to the regulations if we believe there is jeopardy to
the revenue or this alternative procedure causes an
administrative burden.
IV.
Conditions Of Alternative Procedure
Will
I still need to complete the export forms the regulations
require and obtain appropriate proof of exportation if TTB
approves my use of this alternative procedure?
Yes,
you must complete all export forms as required by the
regulations and obtain acceptable proof of exportation. You
must organize and maintain these documents at your premises,
and make them available for inspection by TTB officers during
normal business hours. In the event that you do not make
these documents available, we will treat the export as a
taxable removal, subject to penalties and interest for failure
to pay, from the time the product is removed.
How
long must I maintain these documents at my premises?
You
must retain all export documents at your premises for a 6-year
period from the date of exportation. This retention period is
based on 28 U.S.C. 2401, which allows claims for drawback to be
reopened up to 6 years after the date of exportation.
What
documentation must I submit to TTB?
Once
your request to use this alternative procedure is approved,
instead of sending in all of the export documents, you must
submit to us a monthly report of goods exported showing all
exports. We require you to submit these reports to
us electronically.
The electronic report must be submitted via a Microsoft Excel
attachment with specific information listed on it. These
reports should be forwarded each month via e-mail
to [email protected].
A sample report is attached at the end of this circular.
The
monthly report of goods exported is due on or before the
15th day of the month following the month for which the
report is prepared. You must submit a separate monthly
report of goods exported for each approved operation and
premises. Each report must show the applicable registry
or permit number, the company name, the address of the approved
premises, and the month and year it covers. The initial
report is due for the month in which your request is approved.
Three months after the first submission of the monthly report
of goods exported, you must resubmit the report showing that
you received proof of export for each entry or that you made
payment on TTB F 5000.24. You must have signing authority on
file with TTB in order to e-mail this report indicating that
you have all proofs of export or that you made the appropriate
tax payment.
V.
Acceptable Proof Of Exportation
Acceptable
proof of exportation includes all documents that substantiate
the transaction as a removal for export. Proof of export
may include your system of commercial records, such as purchase
orders, production schedules, inland bills of lading, ocean
bills of lading, accounts receivable, letters of credit (LOC),
proofs of payment and so forth. CBP’s certification on
TTB Form 5100.11 and TTB Form 5200.14 will no longer be
necessary.
Although
it is not required, CBP’s certification on TTB Forms may
still be used as proof of export. In addition, Industry
Circular 2000–2 dated
July 6, 2000, identifies types of documentation that are
acceptable proof of export for each type of shipment. We list
these documents below.
What
documents are acceptable to prove an export to contiguous
foreign countries?
Any one of
these is acceptable for proof of export to Canada or Mexico:
For
alcohol beverages and tobacco products: an export bill
of lading (signed by the manufacturer and carrier) containing
the information required by 27 CFR part 28 or 44. The export
bills of lading should be marked with quantity in traceable
units, export location, export permit number, foreign trade
zone, and/or bonded warehouse number.
For
alcohol beverages and tobacco product shipments by rail:
a signed railway express receipt containing the information
required for an export bill of lading by 27 CFR part 28 or
44.250. This should indicate the shipper, consignee, foreign
company, foreign address, nature and quantity of goods.
For
spirits and wine: Form 5100.11, certified by CBP in parts V,
VI, and VII.
For
beer: Form 5130.12 (1689), certified by CBP in parts II, III
and IV.
What
documents are acceptable to prove an export to a non-contiguous
foreign country?
Any one of
the items listed below is acceptable to prove export to a
non-contiguous foreign country. You may also use these
documents to prove a transfer to United States possessions,
including Puerto Rico and the Virgin Islands.
For
alcohol beverages and tobacco products: an export bill
of lading (signed by the manufacturer and carrier) containing
the information required by 27 CFR part 28 or 44. The export
bills of lading should be marked with quantity in traceable
units, export location, export permit number, foreign trade
zone, and/or bonded warehouse number.
For
alcohol beverages and tobacco products through shipment by
air: a signed airway bill containing the information
required by 27 CFR part 28 or
44.
(Do not confuse shipments made by air with shipments for use
as supplies—see below). This should indicate the
shipper, consignee, foreign company, foreign address, and
nature and quantity of goods.
For
tobacco products shipped by parcel post: Form 5200.14
(2149/2150), certified by postal authorities as provided in 27
CFR 44.208.
For
alcohol beverages and tobacco products: a certificate
from the export carrier executed under the penalties of
perjury and containing the information required by 27 CFR part
28 or 44.
A
certificate of receipt from an official of the foreign
country. This must contain sufficient information to
identify the shipment and the TTB export document covering the
shipment.
For
spirits and wine: Form 5100.11, certified by CBP in parts V
and VII.
For
beer: Form 5130.12 (1689), certified by CBP in parts II and
IV.
For
tobacco products: Form 5200.14 (2149/2150), certified by CBP
in parts III and IV.
What
is acceptable to prove an export as supplies on certain vessels
and aircraft?
Any one of
these is acceptable to prove export for use as supplies on
vessels and aircraft:
For
alcohol beverages and tobacco products: a certificate of
receipt executed under the penalties of perjury by the master
of the vessel, steamship line or aircraft, as the case may be,
and containing the information required by 27 CFR part 28 or
44.
For
spirits and wine: Form 5100.11, certified by CBP in parts V
and VII.
For
beer: Form 1689 (5130.12), certified by CBP in part II.
In the case of beer used on fishing vessels, CBP must certify
parts II and IV.
For
tobacco products: Form 5200.14 (2149/2150), certified by CBP
in part IV.
What
is acceptable to prove a transfer to and deposit in a customs
bonded warehouse (CBW) or a customs manufacturing bonded
warehouse (CMBW)?
Prior
to making any shipments of this type, you must verify the
warehouse is properly qualified with the CBP. The CBW or
CMBW operator must complete all applicable information and sign
the appropriate form for the export product:
For
spirits and wine: Form 5100.11, part V.
For
beer: Form 5130.12 (1689), part II (modify Item 12 G to show
CBW instead of FTZ).
For
tobacco products, through a class 9 CBW (duty free store):
Form
5200.14 (2149/2150), part V.
You
may not export tobacco products through other classes of
customs bonded warehouses.
What
is acceptable to prove an export from an export warehouse?
Prior
to making any shipments of this type, you must verify the
warehouse is properly qualified as an export warehouse (EW).
The EW operator must complete all applicable information and
must sign Form 5200.14 (2149/2150) in part V. You may not
export alcohol beverages through export warehouses.
What
is acceptable to prove an export for use by the armed forces?
You
may deliver your alcohol beverages or tobacco products to a
military base in the United States prior to being shipped to a
base in a foreign country. The commanding, supply or
receiving officer, or other responsible military personnel at
the military base where you deliver the shipment must complete
and sign the appropriate form for the product you export.
For
spirits and wine: Form 5100.11, part VIII.
For
beer: Form 5130.12 (1689), part V.
For
tobacco products: Form 5200.14 (2149/2150), part IV.
Alternatively,
the responsible military personnel may acknowledge receipt for
export on the Department of Defense Form, Transportation
Control and Movement Document (TCMD). If you use a TCMD as
proof of export, the military personnel must legibly provide
this information: (1) Date, (2) discrepancy from bill of lading
or shipping document, (3) rank, (4) title, and (5) signature.
If
the place of delivery is in a foreign country, handle the
shipment as an export to a foreign country and use any of the
documents listed in this Industry Circular, as applicable, to
prove export. Regardless of the location of the place of
delivery, all alcohol beverages or tobacco products you remove
on Forms 5100.11, 5130.12 (1689), or 5200.14 (2149/2150) for
transfer to the armed forces must be used by the
military outside of
the United States. You may ship tobacco products to other
Federal departments or agencies for their official use.
These instructions also apply to these shipments.
VI.
Clarification of Repacking for Export
Finally,
in issuing this Industry Circular, we recognize that modern
shipping practices often entail consolidation and other
repacking procedures between the removal of the goods from the
bonded premises until they are laden on board the export
carrier. Your commercial records would constitute
acceptable proof of export if the goods stop for repacking
purposes if all of
the following conditions exist:
The
foreign destination—the ultimate consignee—is
established prior to removal of the goods from the bonded
premises, and this is clearly reflected in your commercial
records.
The
goods are consistently moving, in accordance with good
commercial practice, to the ultimate consignee and the
shipping documents show a foreign country as the final
destination.
The
repacking is accomplished for reasons of economy or
efficiency, with goods consigned directly to the foreign
customer—the ultimate consignee.
Accordingly,
this Industry Circular supersedes the portion of Industry
Circular 2000– 2 that
addressed our position on in-transit stops of untaxpaid
shipments for consolidation purposes. TTB will initiate
rulemaking to codify this practice.
VII.
Retention Of Supporting Documents
You
must continue to maintain all records and documents supporting
proof of export forms, as directed by 27 CFR 28.45 and 44.199.
VIII.
Questions
Who
can answer my questions about this Industry Circular?
If
you have questions about this Industry Circular, you may send
an e-mail to [email protected].
You may also contact Barbara Klumpp at the National Revenue
Center at (513) 684-7132, or Joanne Brady at the Regulations
and Procedures Division, at (215) 333-7050.
Signed,
Arthur
J. Libertucci
Administrator
Alcohol
and Tobacco Tax and Trade Bureau
Sample
Letterhead Request For Alternative Procedure
Alcohol
and Tobacco Tax and Trade Bureau (TTB) National Revenue
Center Attn: Export Alternative Procedure Program
8002 Federal Office Building 550 Main Street Cincinnati, OH
45202
Retention
of Alcohol and Tobacco Export Documentation Alternative
Procedure Request
[Insert
business name and permit/registry number]
requests to use the alternative procedure in accordance with
Industry Circular 2004–3, under the provisions of
______________. [Insert
“27 CFR 28.20” for alcohol; “27 CFR 44.72”
for tobacco].
We request that TTB approve this alternative procedure to allow
us to retain notice of exportation forms and documents proving
exportation at our premises instead of submitting these
documents to the National Revenue Center (NRC).
We
understand that all appropriate export documentation outlined
in Industry Circular 2004-3 must be completed and maintained at
our approved premises, and we must make them available to TTB
officers upon their request. We also understand that if
we cannot make these documents available, TTB would treat the
export as a taxable removal, subject to penalties and interest
for failure to pay, from the date the product is removed.
We
understand that we will be required to prepare a Monthly Report
of Goods Exported, as outlined in this circular, containing all
information required by TTB. We understand that we must
submit this Monthly Report of Goods Exported to TTB as outlined
in Industry Circular 2004–3, and that TTB may require
submission of all documentation at any given time.
We
understand that TTB may rescind this approval at any time if
the Bureau determines that this alternative procedure is an
administrative burden or causes jeopardy to the revenue.
[Insert
Name of Authorized Person Submitting Request]
Signature
of Authorized Person
____________________________________________
Date:
Company
Principal Name:
Operating Name (if
applicable):
Address of Premises
Street
Address:
City,
State, Zip Code:
Telephone
Number:
Registry Number:
Permit Number (if
applicable):
MONTHLY
REPORT OF GOODS EXPORTED
NAME
OF PROPRIETOR_______________
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FOR
MONTH/YR ENDING________________
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ADDRESS
OF PREMISES_______________
|
PERMIT/REGISTRY
NO. _________________
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S/N
TTB FORM
|
DATE
OF REMOVAL
|
TYPE
OF EXPORT
|
DESTINATION
|
TRANSPORT
MODE
|
AMOUNT
OF PRODUCT
|
AMOUNT
OF TAX LIABILITY
|
PROOF
OF EXPORT RECEIVED
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Column
Descriptions:
S/N
TTB Form – Serial No. of Forms 5100.11, Transport Mode –
Specify type of transportation 5130.12 or 5200.14. used. Date
of Removal – Date of removal or withdrawal of Amount of
Product – Specify amount of wine gallons, goods exported.
proof gallons, or barrels of goods exported.
Type of Export – Direct Export, Shipment to Amount of Tax
Liability – Total amount of tax liability of Armed
Forces, Foreign Trade goods exported. Zone, Customs Bonded
Warehouse, Use as Supplies on Vessels or Aircraft. Destination
– Destination of goods exported. Proof of Export –
Indicate “Y” for yes if proof of export has been
received. Indicate “N” for No if proof of
export has not been received.
Additional
Instructions:
You
must obtain proof of export within 90 days from the date of
removal. If you have not received adequate proof of
export within 90 days from the date of removal, you must pay
applicable taxes, plus interest, and make an adjusting entry on
your next Excise Tax Return, Form 5000.24. If you are
late in paying or fail to pay taxes and interest, we may impose
additional penalties and interest.
Three
months after the first submission of the Monthly Report of
Goods Exported, you must resubmit the summary report showing
that you received proof of export for each entry or that you
made payment on Form 5000.24. The individual submitting
this report must have signing authority on file with TTB.
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