Rev. Proc. 56-4

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to provide certain information as an aid in the uniform and orderly transition from the provisions of previous Regulations 8, insofar as they relate to dealers in leaf tobacco and quasi manufacturers of tobacco, to the provisions of the Regulations relating to Dealers in Tobacco Materials, published in the Federal Register on October 8, 1955, and effective on that date.

SEC. 2. PERMITS.

The Assistant Regional Commissioner, Alcohol and Tobacco Tax, will distribute to each person now qualified as a dealer in leaf tobacco or quasi manufacturer of tobacco in his region Form 2093, Application for Permit, with instructions as to the documents required to be furnished with such application. In order for the dealer in leaf tobacco or quasi manufacturer of tobacco to continue his operations, it will be necessary that the application for permit be made without undue delay. An application for permit must be filed for each establishment operated by the dealer and shall show the location of the establishment and each outside place of storage for tobacco materials, to be covered under the bond of the dealer, if such outside place of storage is not separately qualified as the establishment of a dealer in tobacco materials. Where a person is operating an establishment as a dealer in leaf tobacco and also operates a factory as a quasi manufacturer of tobacco, a single application to cover both establishments will be sufficient. Under section 280.50 of the Regulations relating to Dealers in Tobacco Materials, persons who merely store or fumigate tobacco materials solely for dealers in tobacco materials, for manufacturers of tobacco products, for farmers or growers of tobacco, or for bona fide associations of farmers or growers of tobacco, are not required to qualify as dealers in tobacco materials and, therefore, need not file an application. Similiarly, under section 280.54 of the regulations speculators in leaf tobacco, also referred to as `pinhookers,' are not required to qualify as dealers in tobacco materials and need not file an application. The permit issued to a dealer in tobacco materials will bear the same number, wherever possible, as that now assigned to his current establishment as a dealer in leaf tobacco, or to his factory as a quasi tobacco manufacturer. Where a dealer desires to add an outside place of storage for his tobacco materials, after the issuance to him of the original permit as such a dealer, he is required to make application on Form 2098, Application for Amended or Additional Permit, to the Assistant Regional Commissioner, Alcohol and Tobacco Tax, for an additional permit to cover such additional outside place of storage. This application must be supported by Form 2105, Extension of Coverage of Bond.

SEC. 3. TRADE NAME CERTIFICATE.

The refurnishing of a trade name certificate is not intended, under section 280.64 of the regulations, where the Assistant Regional Commissioner already possesses such a certificate furnished by the dealer or quasi manufacturer in connection with his prior qualification.

SEC. 4. BOND.

Form 2101, Bond-Dealer in Tobacco Materials, required to be furnished under section 280.65, upon original qualification, shall, in addition to the dealer's establishment, cover all outside places of storage shown on the dealer's application for original permit, Form 2093. Thereafter, the addition of any place of storage must be supported by an extension of coverage of bond. To ascertain the amount of the bond required of a dealer who has been qualified during the preceding twelve months, such dealer will use the total quantity of tobacco materials received by him during the twelve month period, divided by twelve, to establish a monthly average. In the case of a dealer commencing business, or a dealer operating for less then twelve months, it will be necessary for him to estimate the monthly average quantity of tobacco materials received.

SEC. 5. RECORDS.

.01 The records, required under section 280.127, must be complete and adequate, consistent with accepted commercial practice, with respect to all tobacco materials received (except with respect to samples as provided by section 280.124), lost or destroyed, and shipped or delivered. The keeping of Record 59, Record of Dealer in Leaf Tobacco, and Form 74, Book to be Kept by Manufacturer of Tobacco and Snuff, and the making of monthly reports on Form 775, Report of Dealer in Leaf Tobacco, and Form 62A, `Quasi' Tobacco Manufacturer's Monthly Return, are no longer required.

.02 The preparation of Form 774, Tobacco Invoice, will be required only in connection with shipments of tobacco materials for export, and only until such time as the new export regulations in 26 CFR Part 290 become effective.

SEC. 6. INQUIRIES.

Inquiries in regard to this Revenue Procedure should refer to the number thereof and should be directed to the Director, Alcohol and Tobacco Tax Division, for the attention of O:AT:T.

SEC. 7. EFFECTIVE DATE.

This Revenue Procedure is effective October 8, 1955, the effective date of the Regulations relating to Dealers in Tobacco Materials.