Manufacturers of Nonbeverage Products - Records to Support Claims for Drawback, TTB REC 5530/2
Extension without change of a currently approved collection
No
Regular
02/22/2021
Requested
Previously Approved
36 Months From Approved
02/28/2021
615
530
615
11,130
0
0
The Internal Revenue Code (IRC) at 26 U.S.C.5001 imposes Federal excise tax on distilled spirits produced or imported into the United States. The IRC at 26 U.S.C. 5111â5114 allows manufacturers of certain ânonbeverageâ productsâmedicines, medicinal preparations, food products, flavors, flavoring extracts, or perfumeâto claim drawback (refund) of all but $1.00 per proof gallon of the excise tax paid on the distilled spirits contained in or used in the production of such products. Under those IRC authorities, TTB has issued regulations in 27 CFR part 17 governing nonbeverage product drawback claims, which includes requirements to keep source records supporting such claims. The required records, which may consist of usual and customary business records, document the distilled spirits received, taxes paid, date and quantity used, amount of alcohol recovered, other ingredients received and used (to validate formula compliance), quantity of intermediate products transferred to other plants, and the disposition or purchaser of the products. The collected information is necessary to protect the revenue as it helps prevent payment of incorrect or fraudulent claims and the diversion to beverage use of distilled spirits on which respondents claim nonbeverage drawback.
There are no program changes associated with this information collection at this time. As for adjustments, due to a change in agency estimates, TTB is increasing the estimated annual burden associated with this information collection from 530 respondents and responses to 615 due to growth in the number of nonbeverage product manufacturers subject to this information collection requirement. However, also due to a change in agency estimates, TTB is reducing the estimated annual per-respondent burden for this information collection from 21 hours to 1 hour. Specifically: (1) TTB has determined that respondents largely meet this information collection requirement through the keeping of usual and customary records such as purchase invoices, production records, and sales receipts, which respondents keep during the normal course of business, regardless of any regulatory requirement to do so. Per the OMB regulations at 5 CFR 1320.3(b)(2), the keeping of such usual and customary records does not place an additional burden on respondents. (2) TTB has determined that the 21 hours of per-respondent burden previously reported for this information collection duplicated, in part, burden hours associated with the filing of non-beverage drawback claims, which is approved under other OMB control numbers. Respondents file such claims using forms TTB F 5620.8, ClaimâAlcohol and Tobacco Taxes, approved under OMB No. 1513â0030, and form TTB F 5154.2, Supporting Data for Nonbeverage Drawback Claims, approved under OMB No. 1513â0098. Therefore, TTB is reducing the estimated total burden associated with this information collection from the 11,130 hours previously reported to a total of 615 hours.
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.
1513-0073 Supporting Statement (02-2018).docx
Manufacturers of Nonbeverage Products - Records to Support Claims for Drawback, TTB REC 5530/2