If, upon examination of any application (including a renewal application) for a basic permit, the appropriate TTB officer has reason to believe that the applicant is not entitled to such permit he shall issue a citation for the contemplated disapproval of the application. [T.D. 6954, 33 FR 6814, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975; as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996] Sec. 71.49a Applications for operating permits and industrial use permits.
If, on examination of an application for an operating permit or an industrial use permit, the appropriate TTB officer has reason to believe:
(a) In case of an application to withdraw and use distilled spirits free of tax, the applicant is not authorized by law or regulations issued pursuant thereto to withdraw or use such distilled spirits; or
(b) The applicant (including in the case of a corporation, any officer, Administrator, or principal stockholder and, in the case of a partnership, a partner) is, by reason of the applicant's business experience, financial standing, or trade connections, not likely to maintain operations in compliance with 26 U.S.C. chapter 51 or implementing regulations; or
(c) The applicant has failed to disclose any material information required, or has made any false statement as to any material fact, in connection with his application; or
(d) The premises on which the applicant proposes to conduct the business are not adequate to protect the revenue; He may issue a citation for the contemplated disapproval of the application. (72 Stat. 1349, 1370; 26 U.S.C. 5171, 5271) [T.D. 6389, 24 FR 4791, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55846, Sept. 28, 1979; T.D. ATF-199, 50 FR 9196, 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996] Sec. 71.49b Denial of application for tobacco permit.
The appropriate TTB officer may issue a citation for the contemplated disapproval of an application for a tobacco permit provided for in 26 U.S.C. 5713, if the appropriate TTB officer on examination of the application has reason to believe--
(a) The premises on which it is proposed to conduct the business are not adequate to protect the revenue;
(b) The applicant for a permit does not meet the minimum manufacturing and activity requirements in Sec. 40.61 of this chapter; or
(c) The applicant (including, in the case of a corporation, any officer, administrator, or principal stockholder and, in the case of a partnership, a partner) is, by reason of his business experience, financial standing, or trade connections, or by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with 26 U.S.C. chapter 52, or has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, or has failed to disclose any material information required or made any material false statement in the application. (72 Stat. 1421, as amended; 26 U.S.C. 5712) [T.D. TTB-75, 74 FR 14491, Mar. 31, 2009]