Rev. Rul. 64-15

Advice has been requested whether an exporter of tobacco materials who deals solely in export shipments of such materials which are made direct from his suppliers to the export vessel or other export carrier is a dealer in tobacco materials and required to qualify as such.

Section 5702(m) of the Internal Revenue Code of 1954 defines a dealer in tobacco materials as any person who handles tobacco materials for sale, shipment, or delivery solely to another dealer in such materials, to a manufacturer of tobacco products, or to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States. That section lists certain exceptions to the definition not here pertinent.

It is held that where an exporter of tobacco materials has shipments consigned to him by the suppliers of the tobacco materials and it is necessary for him to handle such tobacco materials to the extent of arranging export transportation and seeing to it that the tobacco materials are delivered to the proper export vessel or other carrier, he must qualify as a dealer in tobacco materials. However, where the exporter has the shipments consigned by his suppliers directly to the purchaser or consignee in the foreign country and such shipments are made by the suppliers directly to the vessels or other export carriers, the exporter need not qualify as a dealer in tobacco materials.

Revenue Ruling 56-149, C.B. 1956-1, 534, is hereby superseded.

¹ Prepared pursuant to Revenue Procedure 62-24, C.B. 1962-2, 489.