Manufacturers of Nonbeverage Products - Records to Support Claims for Drawback, TTB REC 5530/2

Forms and Documents

Document Name	Status
1513-0073 Supporting Statement (02-2018).docx Supporting Statement A	2021-02-08

IC Document Collections

IC ID	Document Title	Status
16080	Manufacturers of Nonbeverage Products - Records to Support Claims for Drawback, TTB REC 5530/2	Modified

ICR Details

OMB Control No: 1513-0073	ICR Reference No: 202102-1513-005
Status: Received in OIRA	Previous ICR Reference No: 201711-1513-004
Agency/Subagency: TREAS/TTB	Agency Tracking No: ICN 81 - 7/11
Title: Manufacturers of Nonbeverage Products - Records to Support Claims for Drawback, TTB REC 5530/2
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 02/22/2021

	Requested	Previously Approved
Expiration Date	36 Months From Approved	02/28/2021
Responses	615	530
Time Burden (Hours)	615	11,130
Cost Burden (Dollars)	0	0

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Abstract: The Internal Revenue Code (IRC) at 26 U.S.C.5001 imposes Federal excise tax on distilled spirits produced or imported into the United States. The IRC at 26 U.S.C. 5111–5114 allows manufacturers of certain “nonbeverage” products—medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume—to claim drawback (refund) of all but $1.00 per proof gallon of the excise tax paid on the distilled spirits contained in or used in the production of such products. Under those IRC authorities, TTB has issued regulations in 27 CFR part 17 governing nonbeverage product drawback claims, which includes requirements to keep source records supporting such claims. The required records, which may consist of usual and customary business records, document the distilled spirits received, taxes paid, date and quantity used, amount of alcohol recovered, other ingredients received and used (to validate formula compliance), quantity of intermediate products transferred to other plants, and the disposition or purchaser of the products. The collected information is necessary to protect the revenue as it helps prevent payment of incorrect or fraudulent claims and the diversion to beverage use of distilled spirits on which respondents claim nonbeverage drawback.

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Authorizing Statute(s): US Code: 26 USC 5111 - 5114 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:
	85 FR 69680	11/03/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 10434	02/19/2021
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Manufacturers of Nonbeverage Products - Records to Support Claims for Drawback, TTB REC 5530/2

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ICR Summary of Burden

	Total Request	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	615	530	0	0	85	0
Annual Time Burden (Hours)	615	11,130	0	0	-10,515	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement: There are no program changes associated with this information collection at this time. As for adjustments, due to a change in agency estimates, TTB is increasing the estimated annual burden associated with this information collection from 530 respondents and responses to 615 due to growth in the number of nonbeverage product manufacturers subject to this information collection requirement. However, also due to a change in agency estimates, TTB is reducing the estimated annual per-respondent burden for this information collection from 21 hours to 1 hour. Specifically: (1) TTB has determined that respondents largely meet this information collection requirement through the keeping of usual and customary records such as purchase invoices, production records, and sales receipts, which respondents keep during the normal course of business, regardless of any regulatory requirement to do so. Per the OMB regulations at 5 CFR 1320.3(b)(2), the keeping of such usual and customary records does not place an additional burden on respondents. (2) TTB has determined that the 21 hours of per-respondent burden previously reported for this information collection duplicated, in part, burden hours associated with the filing of non-beverage drawback claims, which is approved under other OMB control numbers. Respondents file such claims using forms TTB F 5620.8, Claim—Alcohol and Tobacco Taxes, approved under OMB No. 1513–0030, and form TTB F 5154.2, Supporting Data for Nonbeverage Drawback Claims, approved under OMB No. 1513–0098. Therefore, TTB is reducing the estimated total burden associated with this information collection from the 11,130 hours previously reported to a total of 615 hours.

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Annual Cost to Federal Government: $0

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.     No

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.     No

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? No

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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: 02/22/2021

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