Under the Internal Revenue Code (IRC) at 26 U.S.C. 7652(g), the provisions of 26 U.S.C. 5111â5114 providing for drawback (refund) of Federal excise taxes paid on distilled spirits used in certain nonbeverage productsâmedicines, medicinal preparations, food products, flavors, flavoring extracts, and perfumesâalso apply to such articles brought into the United States from Puerto Rico or the U.S. Virgin Islands. In particular, 26 U.S.C. 5112 requires nonbeverage product drawback claimants to keep the records necessary to document the information provided in such claims, subject to regulations prescribed by the Secretary of the Treasury. Based on those IRC authorities, the TTB regulations at 27 CFR 26.174 and 26.310 require persons making nonbeverage product drawback claims on eligible articles brought into the United States from Puerto Rico or the U.S. Virgin Islands to keep certain business, formula, and taxpayment records documenting the data regarding the distilled spirits and articles in question provided in such claims. Those persons must maintain the required records at their business premises for at least 3 years, during which time TTB may inspect the records to verify the data provided in their claims. TTBâs verification of such nonbeverage product drawback claims is necessary to protect the revenue and ensure compliance with relevant statutory and regulatory requirements.
In the past, TTB estimated that 20 respondents made an average of eight annual responses each to this collection, and that each response took one hour to complete, consisting of one-half hour of reporting and one-half hour of recordkeeping. This resulted in an estimated annual burden of 160 responses and 160 hours for this collection. However, TTB finds that this collection has no reporting requirement as it consists solely of records maintained on a continuing basis by respondents at their business premises, which equates to one annual response per respondent. Therefore, the agency is revising estimates to reflect a decrease in the estimated annual burden for this collection, from 160 responses to 20, and from 160 hours to 20, all of which are for recordkeeping.
Also, based on recent experience, TTB is decreasing the number of annual respondents to this information collection, from 20 to 10, due to a change in agency estimates. This results in further decreases in the number of annual responses to this collection, from 20 to 10, and in the estimated total annual burden, from 20 hours to 10.
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.
1513-0089 Supporting Statement (03-2019).docx
Records Supporting Drawback Claims on Eligible Articles Brought into the United States from Puerto Rico or the Virgin Islands (TTB REC 5530/3)