Rev. Rul. 56-17

Requests have been received by the Internal Revenue Service for permission to omit the legend required by article 5(a)(3) of Regulations 73, Exportation Without Payment of Tax of Tobacco Manufactures, etc., and article 5(a)(3) of Regulations 76, Shipment or Delivery of Manufactured Tobacco, Snuff, Cigars, or Cigarettes for Use as Sea Stores Without Payment of Internal-Revenue Tax, to be shown on cases of tobacco products removed free of tax for export and sea stores purposes.

Articles 5(a)(3) of Regulations 73 and Regulations 76 (applicable to the 1954 Code by virtue of T.D. 6091, C.B. 1954-2, 47) require the legend

         ____________________________ from export (or sea stores)

Authority was granted during World War II, for reasons of military security, to omit the legend from cases of tobacco products removed, without payment of tax, for delivery to the Armed Forces of the United States, for exportation or for use as sea stores. This authority has not been rescinded since it has been determined that the legend serves no useful purpose and its appearance on such cases of tobacco products, which shows the kind of merchandise contained therein, encourages pilferage and unlawful diversion of the products. For the same reasons, the National Office has, from time to time, approved specific requests, when submitted by manufacturers, to omit the above legend from cases of tobacco products removed for the purposes indicated.

In view of the above, where a manufacturer of tobacco, cigars, or cigarettes so desires, he may omit the legend referred to from cases of such products removed from his factory, without payment of tax, for export or for use as sea stores. However, cases of tobacco products so removed must be numbered for identification and accounting purposes.

This arrangement conforms with the proposed new export and sea stores regulations, 26 CFR 290, which are now in preparation and are expected to be published in the near future.

Inquiries in regard to the provisions of this Revenue Ruling should be directed to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.