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Rev. Proc. 55-11


Rev. Proc. 55-11; 1955-2 C.B. 912

DATED
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Citations: Rev. Proc. 55-11; 1955-2 C.B. 912

Obsoleted by Rev. Rul. 62-172 Modified by Rev. Proc. 57-7

Rev. Proc. 55-11

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to provide certain information formation as an aid in the uniform and orderly transition from the provisions of Regulations 8, insofar as they relate to manufactured tobacco, to the provisions of the Regulations relating to Manufacturers, Importers, and Dealers in Manufactured Tobacco, published in the Federal Register on July 19, 1955, and effective on that date.

SEC. 2. PERMITS.

Each Assistant Regional Commissioner, Alcohol and Tobacco Tax, will distribute to each qualified manufacturer of tobacco in his region, except as indicated below, an application for permit, Form 2093, with instructions as to the documents required to be furnished with such application. In order for the manufacturer to continue his operations, it will be necessary that the application for permit be made without undue delay. The permit issued to a manufacturer will bear the same number as the revenue number now assigned to the factory of the manufacturer. This procedure does not apply to such persons who carry on the business of a quasi-manufacturer and who, under the Internal Revenue Code of 1954, are defined as dealers in tobacco materials and will make applications for permits as such dealers when Part 280, Title 26, Code of Federal Regulations, relating to such dealers, becomes effective.

SEC. 3. OPENING INVENTORIES.

.01 A manufacturer of tobacco, qualified on July 19, 1955, is not required to make an opening inventory in connection with his application for permit unless a superseding bond is given with such permit application.

.02 An opening inventory made by a fiduciary successor, under section 275.93 of the regulations, will be regarded as the closing inventory of the predecessor.

SEC. 4. TRADE NAME CERTIFICATE.

The refurnishing of a trade name certificate is not intended under section 275.74 of the regulations when the Assistant Regional Commissioner, Alcohol and Tobacco Tax, already possesses such a certificate furnished by the manufacturer in connection with his prior qualification.

SEC. 5. TOBACCO FACTORY AND CIGAR AND CIGARETTE FACTORY IN ONE BUILDING.

Where the premises of an existing tobacco factory, also a cigar and cigarette factory, are located in the same building and such factories are of common ownership, the separation prescribed by section 275.77(b) may not be required, provided the Assistant Regional Commissioner, Alcohol and Tobacco Tax, is satisfied that the present premises of such factories afford adequate protection to the revenue.

SEC. 6. PACKAGING MATERIALS.

Manufacturers of tobacco may use their existing supplies of packaging materials, prepared under previous regulations, until such supplies are exhausted.

SEC. 7. DUMMY PACKAGES FOR DISPLAY PURPOSES.

A manufacturer of tobacco may use his regular packages, when empty, as dummy packages for display purposes, provided such packages do not have any revenue stamps affixed thereto.

SEC. 8. MANUFACTURED TOBACCO DAMAGED OR WITHDRAWN FROM THE MARKET.

Packages of manufactured tobacco that are damaged or withdrawn from the market by a manufacturer, or his agent, may be assembled, before the detail of a revenue officer is requested, in a suitable place in his factory, if the manufacturer has received the authorization so to do as required by section 275.142 of the regulations.

SEC. 9. RECORD.

.01 The record, Form 2141, required under section 275.132, is in the process of preparation. The initial distribution of this form will be made as soon as it is available. Until this new form is issued, manufacturers shall continue to keep records on Form 74. Such records should be modified in order to make entries of the operations and transactions required under section 275.132 of the regulations to be recorded, namely, all (a) tobacco materials received (except with respect to samples as provided by section 275.148), shipped, and lost or destroyed, (b) manufactured tobacco produced, received, removed, furnished for personal consumption or use by employees, used for experimental purposes, reduced to material, and lost or destroyed, and (c) stamps received, used, and lost or destroyed.

.02 The preparation of internal revenue tobacco invoices, Form 774, by manufacturers of tobacco with respect to tobacco materials received or shipped will no longer be required, except in connection with the exportation of tobacco materials until new regulations in Part 290, Title 26, Code of Federal Regulations, become effective.

SEC. 10. RESTAMPING PACKAGES.

Manufacturers will not be restricted, under section 275.63, as to the place where the restamping of packages of manufactured tobacco from which the stamps have been lost or destroyed, or where the repacking of such tobacco, may be accomplished. If the manufacturer desires to bring the tobacco back into his factory for such purposes, he may do so, subject to the provisions of sections 275.63 and 275.142 of the regulations.

SEC. 11. TERMINATION OF EXPORT AND SEA STORES BONDS.

Bonds required of manufacturers of tobacco under section 275.75 shall cover all of the operations of the factories of the manufacturers for which the bonds are furnished, including removals and receipts of tobacco materials and manufactured tobacco, as indicated in sections 275.140, 275.141, 275.146, 275.147, 275.155, 275.156, and 275.157. Where the Assistant Regional Commissioner, Alcohol and Tobacco Tax, has determined that the manufacturer's bond meets the standards set forth in section 275.75, and is holding a separate export or sea stores bond, Form 549 or 549-A, furnished for the same factory, he may terminate such separate bonds. The sureties on such bonds shall remain liable in respect of any liability incurred by the manufacturers in connection with export or sea stores removals made under and charged against such bonds until such removals are properly accounted for and cleared.

SEC. 12. 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, marked for the attention of O:AT:T.

SEC. 13. EFFECTIVE DATE.

This Revenue Procedure is effective July 19, 1955.

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