Rev. Rul. 55-589

The Internal Revenue Service has recently considered the problem of providing for the disposition of existing stocks of packages and other packing materials used under previous regulations in putting up cigars, cigarettes, and manufactured tobacco.

The Regulations Relating to Manufacturers, Importers, and Dealers in Cigars and Cigarettes, effective June 25, 1955, supersede Regulations 8 in so far as they relate to cigars and cigarettes. They new regulations provide that every package of cigars and cigarettes subject to tax shall, before removal from the factory, have legibly printed thereon, or on a label securely affixed thereto, a mark consisting of the name and location of the manufacturer, or his permit number, and a warning that the law forbids the reuse of the Federal stamps thereon, and requires the person who empties the package to destroy such stamps when the package is emptied. It further provides that packages of large cigars subject to tax shall, before removal, have imprinted thereon, or on a label securely affixed thereto, a class designation, for tax purposes, appropriate to the cigars contained in the package.

Similarly, the Regulations Relating to Manufacturers, Importers, and Dealers in Manufactured Tobacco, effective July 19, 1955, supersede Regulations 8 in so far as they relate to manufactured tobacco. Under the provisions thereof, every package of manufactured tobacco subject to tax shall, before removal from the factory, have legibly imprinted thereon, or on a label securely affixed thereto, a mark consisting of the name and location of the manufacturer's or his permit number, and a warning that the law forbids the reuse of the Federal stamps thereon, and also requires the person who empties the package to destroy such stamps when the package is emptied.

Since the wording of the caution notice, factory brand, and classification clause previously required fill the purpose of the mark (and class designation in the case of packages of large cigars) required in the new regulations, existing stocks of packages, wraps, or labels approved under the superseded regulations may continue to be used for cigars, cigarettes, and manufactured tobacco until such stocks are exhausted. For similar authorization with respect to tobacco products withdrawn free of tax for the use of the United States, see Revenue Ruling 55-530, page-of this Bulletin