Rev. Proc. 57-20

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to advise manufacturers of tobacco products that they may now receive on the bonded premises of their factories taxpaid tobacco products of a kind other than that produced therein, and that where they have been granted blanket authority to receive taxpaid tobacco products it will no longer be necessary to furnish the Assistant Regional Commissioner, Alcohol and Tobacco Tax, information with respect to each lot or shipment to be received.

SEC. 2. BACKGROUND.

The procedure for the receipt of taxpaid tobacco products on the bonded premises of a tobacco factory is contained in Revenue Procedure 57-9, page 734 of this Bulletin. Such Revenue Procedure restricts the receipt of taxpaid tobacco products to the kind produced at the receiving factory and provides for the issuance of blanket authority to receive such products provided the Assistant Regional Commissioner is furnished certain information with respect to each lot or shipment to be received.

SEC. 3. CHANGES IN PROCEDURE.

A manufacturer of tobacco products may now receive taxpaid tobacco products of a kind other than that produced by him into the bonded premises of his factory. Blanket authority may still be obtained for the receipt of tobacco products, but it will no longer be necessary for the manufacturer receiving such products to submit to the Assistant Regional Commissioner the information required by Revenue Procedure 57-9, supra, as to each lot or shipment to be received.

SEC. 4. STORAGE AND ACCOUNTING.

All taxpaid tobacco products received, whether or not of the kind produced at the factory, are to be stored, segregated, or earmarked in such a manner as to make them readily identifiable, as taxpaid products received, for inspection and accounting purposes.

SEC. 5. RECORDS.

When taxpaid tobacco products of the kind produced in the factory are received, the manufacturer will continue to record the receipt and subsequent disposition of such products in section V of the record required to be kept on Form 2141, Record to be Kept by Manufacturer of Tobacco, Form 2142-A, Record to be Kept by Manufacturer of Large Cigars, or Form 2143, Record to be Kept by Manufacturer of Small Cigars and Large and Small Cigarettes, as the case may be. On the other hand, with respect to taxpaid tobacco products received of a kind other than that produced in the receiving factory, no entries of such products will be required in the revenue record of the factory, since such products will be readily distinguishable from the product manufactured in the factory.

SEC. 6. EFFECT ON OTHER DOCUMENTS.

Revenue Procedure 57-9, supra, is hereby modified.

SEC. 7. INQUIRIES.

Inquiries in regard to this Revenue Procedure should refer to the number thereof and should be directed to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.