Rev. Proc. 64-33

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to set forth interim procedures to be followed to prevent double taxation in the case of certain tobacco products and cigarette papers and tubes exported from and returned unchanged to the United States for delivery to a manufacturer's bonded factory.

SEC. 2. BACKGROUND.

Public Law 88-342, June 30, 1964, page 593, this Bulletin, amends the Tariff Act of 1930, as amended, 19 U.S.C. 1202, and section 5704 of the Internal Revenue Code of 1954. Under these amendments, domestically produced tobacco products and cigarette papers and tubes previously exported from and returned unchanged to the United States may be released from customs custody, without payment of the duty attributable to the internal revenue tax, for delivery to a manufacturer of such articles in accordance with such regulations and under such bond as the Secretary of the Treasury or his delegate shall prescribe. The law became effective on July 1, 1964.

SEC. 3. PROCEDURE.

Until implementing regulations are issued, domestically produced tobacco products exported from and returned unchanged to the United States may be released from customs custody, without payment of that part of the duty attributable to the internal revenue tax, for delivery to the factory of a manufacturer of tobacco products under the bond of such manufacturer. Domestically produced cigarette papers and tubes exported from and returned unchanged to the United States may be released from customs custody, without payment of that part of the duty attributable to the internal revenue tax, for delivery, under the bond of the manufacturer to whom such articles are released, to the factory of (a) a manufacturer of cigarette papers and tubes; or (b) a manufacturer of tobacco products solely for use in the manufacture of cigarettes; or (c) in the case of cigarette papers only, a manufacturer of tobacco products to be put up by him in units of not more than 25 papers each for distribution with packages of manufactured tobacco. To obtain release of these articles from customs custody, the manufacturer must follow the procedures set forth in section 275.86 of the Regulations relating to Importation of Tobacco Materials, Tobacco Products, and Cigarette Papers and Tubes, using Form 2145, Notice of Release of Imported Tobacco Products, Cigarette Tubes, or Taxable Cigarette Papers. Upon such release such articles will be subject to chapter 52 of the Internal Revenue Code (Tobacco, Cigars, Cigarettes and Cigarette Papers and Tubes) as if they had not been exported or otherwise removed from internal revenue bond. Such articles received into the factory of a manufacturer will, of course, be subject to the Manufacture of Tobacco Products Regulations, the Manufacture of Cigarette Papers and Tubes Regulations, as applicable.

SEC. 4. INQUIRIES.

Inquiries in regard to this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.