(a) General. This section applies to tobacco products and cigarette papers and tubes upon which internal revenue tax is payable and which are imported into the United States from a foreign country or are brought into the United States from Puerto Rico, the Virgin Islands, or a possession of the United States. For provisions relating to restrictions on the importation of previously exported tobacco products and cigarette papers and tubes, see Sec. 41.82.
(b) Method of payment. Except for articles imported or brought into the United States as provided in Sec. Sec. 41.85 and 41.85a, the internal revenue tax must be determined before the tobacco products, cigarette papers, or cigarette tubes are removed from customs custody. The tax must be paid on the basis of a return on the customs form or by authorized electronic transmission by which the tobacco products, cigarette papers, or cigarette tubes are duty- and tax-paid to customs.
(c) Required information. When tobacco products or cigarette papers or tubes enter the United States for consumption, or when they are released from customs custody for consumption, the importer must include the Federal excise tax information specified in paragraphs (c)(1) through (7) of this section on the customs form or on the authorized electronic transmission if the form or electronic transmission allows for the reporting of such information. Whether or not the specified information appears on the form or electronic transmission filed with customs, that information, together with a copy of the customs form or the electronic transmission, must be retained and made available for inspection by the appropriate TTB officer.
(1) For cigarette papers: For cigarette papers imported on or after January 1, 2000, the importer will show the total number of cigarette papers, the rate of tax, and the amount of tax due. For cigarette papers imported prior to January 1, 2000, the importer will show the number of books or sets, the number of papers in each book or set, the rate of tax, and the amount of tax due.
(2) For cigarette tubes: The importer will show the number of tubes, the rate of tax, and the tax due.
(3) For cigarettes: The importer will show whether the cigarettes are small (class A) or large (class B), the number of cigarettes, the rate of tax, and the tax due.
(4) For cigars. The importer will show:
(i) The number imported under each HTS item number;
(ii) For large cigars with a sale price of not more than $235.294 per thousand before April 1, 2009, or a sale price of not more than $763.222 per thousand on and after April 1, 2009, the number and total sale price of such cigars;
(iii) For large cigars with a sale price of more than $235.294 per thousand before April 1, 2009, or a sale price of more than $763.222 per thousand on and after April 1, 2009, the number of cigars;
(iv) The applicable tax rate, as specified by Sec. 41.31; and
(v) The tax due.
(5) For smokeless tobacco: The importer will show whether the product is chewing tobacco or snuff, the number of pounds and ounces, the rate of tax and the tax due.
(6) For pipe tobacco: The importer will show the designation ``pipe tobacco'', the number of pounds and ounces, the rate of tax, and the tax due.
(7) For roll-your-own tobacco: The importer will show the designation ``roll-your-own tobacco'' or any other acceptable designation (``cigarette tobacco'', ``cigarette wrapper'', ``cigar tobacco'', or ``cigar wrapper''), the number of pounds and ounces, the rate of tax, and the tax due.
(d) Exceptions. The provisions of this section shall not apply to:
(1) Tobacco products, cigarette papers, or cigarette tubes released from customs custody and transferred in bond to a U.S. manufacturer of tobacco products or cigarette papers and tubes (see Sec. Sec. 41.85, 41.85a, or 41.135);
(2) Puerto Rican products on which the tax is prepaid or deferred (see subpart G); and
(3) Tax payments of cigars from class 6, customs bonded manufacturing warehouses (see Sec. 41.151). (68A Stat. 907, as amended (26 U.S.C. 7652); sec. 202, Pub. L. 85-859, 72 Stat. 1417 (26 U.S.C. 5703)) [T.D. ATF-27, 41 FR 23951, June 14, 1976]
Editorial Note: For Federal Register citations affecting Sec. 41.81, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
Effective Date Note: At 78 FR 38569, June 27, 2013, Sec. 41810 was amended by revising paragraphs (a), (b), and (c) introductory text, effective Aug. 26, 2013 through Aug. 26, 2016.
Release From Customs Custody of Tobacco Products and Cigarette Papers
and Tubes Without Payment of Tax or Certain Duty