Recordkeeping for Tobacco Products Removed in Bond from a Manufacturer's Premises for Experimental Purposes -- 27 CFR 40.232(e)

The Internal Revenue Code (IRC) at 26 U.S.C. 5704(a) provides that manufacturers of tobacco products may remove tobacco products for experimental purposes without payment of Federal excise tax, as prescribed by regulation. Under that authority, the TTB regulations at 27 CFR 40.232(e) require the keeping of certain usual and customary business records regarding the description, shipment, use, and disposition of tobacco products removed for experimental purposes outside of the factory. These records are subject to TTB inspection and are necessary to protect the revenue, as they allow TTB to account for the lawful experimental use and disposition of nontaxpaid tobacco products, and to detect diversion of such products into the domestic market.

The latest form for Recordkeeping for Tobacco Products Removed in Bond from a Manufacturer's Premises for Experimental Purposes -- 27 CFR 40.232(e) expires 2023-01-31 and can be found here.