The Internal Revenue Code at 26 U.S.C. 5722 requires importers and manufacturers of tobacco products, processed tobacco, or cigarette papers and tubes to make reports containing such information, in such form, at such times, and for such periods as the Secretary by regulation prescribes. While processed tobacco is not subject to Federal excise tax under the IRC, tobacco products subject to such taxes may be manufactured using processed tobacco. To protect the revenue by minimizing diversion of processed tobacco to illegal manufacturers, TTB has issued regulations that require persons holding TTB permits as importers or manufacturers of processed tobacco or tobacco products to report all removals, transfers, or sales of processed tobacco made for export or for shipment to any domestic entity that does not hold a such a permit or a permit to operate as an export warehouse proprietor. In general, respondents must report each such shipment by the close of the next business day using form TTB F 5250.2. However, exporters may apply to TTB to report removals made for export using a monthly summary report. TTB F 5250.2 and the monthly summary report require information identifying the TTB permit holder making the processed tobacco shipment, the type and quantity of processed tobacco shipped, the person(s) purchasing (or receiving) and delivering the processed tobacco, and the destination address of the shipment.
US Code:
26 USC 5722
Name of Law: Internal Revenue Code
Program changes: Previously, TTB has not reported the Monthly Summary Report of Processed Tobacco Removals for Export (which includes the report and its associated letterhead application) as an information collection under this collection request. Due to the low number of respondents using this alternative to the per-shipment report made on TTB F 5250.2, TTB believes this information collection is not subject to the Paperwork Reduction Act, which generally exempts information collections with fewer than 10 annual respondents from its requirements. However, as a matter of agency discretion, and for reasons of transparency, TTB now elects to include this information collection under this collection request, with the information collection containing two collection instruments: (1) the Monthly Summary Report of Processed Tobacco Removals for Export, and (2) the Letterhead Application to Use the Monthly Summary Report.
While the estimated annual burden associated with the Monthly Summary Report information collection accounts for 7 respondents, 85 responses, and 170 burden hours, the addition of this collection to this request does not increase the requestâs overall annual burden because, as described below, TTB is lowering the overall burden associated with this request due to a change in agency estimates.
Adjustments: As for adjustments associated with this information collection request: TTB is decreasing the number of annual respondents, responses, and burden hours associated with the Reports of Removal, Sale, or Transfer of Processed Tobacco (TTB F 5250.2) portion of this information collection request. Since TTB first required this collection in 2009, TTB has reported all manufacturers and importers of tobacco products or processed tobacco as potential respondents to that collection. However, based on analysis of recent data by TTBâs National Revenue Center, which is the TTB office that processes the collected information, TTB has determined that only a small number of such TTB-regulated entities ship processed tobacco for export or for delivery to domestic entities that do not hold a TTB permit, but that each respondent makes many such shipments each year. Therefore, TTB is reducing the number of respondents making daily reports to TTB on TTB F 5250.2 from 800 respondents to 13, but is increasing the average number of annual responses per respondent from 8 to 222. These changes decrease the estimated total annual burden for the TTB F 5250.2 information collection from 4,800 responses to 2,886, and from 2,400 hours to 1,443.
In addition, as a result of a re-evaluation of the costs associated with this information collection request, TTB is decreasing the costs to respondents from $19,752 to $8,549, and is decreasing the costs to the Federal Government from $104,000 to $27,400.
$27,400
No
Yes
Yes
No
No
No
Uncollected
Jesse Longbrake 202 453-2265
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form TTB F 5250.2 Report of Removal, Transfer, or Sale of Processed Tobacco (TTB F 5250.2)
Updates to TTB F 5250.2 (07-2009).docx
TTB F 5250.2 (07-2009).pdf
Monthly Summary Report of Processed Tobacco Removals for Export