**BUREAU OF ALCOHOL, TOBACCO AND FIREARMS**

**Alcohol & Tobacco**

**Office of Alcohol and Tobacco**

# How to Avoid Common Pitfalls When Filing Permit Applications {#how-to-avoid-common-pitfalls-when-filing-permit-applications .unnumbered}

*By Vicki McCoy (513)648-7118*

Although ATF strives for excellence in customer service, avoidable
delays occur when application paperwork is received with errors and
omissions. These unintentional errors most often appear on applications
filed for new ATF permits -- ATF Forms 5100.24 and 5230.4. The National
Revenue Center offers these hints on what our customers can do to avoid
the most common mistakes made on these forms:

ATF Form 5100.24, "Application For Basic Permit Under The Federal
Administration Act".

ATF Form 5230.4, "Application For Permit Under 26 USC Chapter 52
Importer of Tobacco Products".

-   The applications must include **complete** information on all
    persons involved with or who have a financial interest in the
    applicant's business.

-   Owner/investor information must include the type of interest in the
    business, for example: any individual with a financial interest in
    the business, sole owner, partners, LLC member/manager, corporate
    officers and directors, and any person with more than 10% voting
    stock/interest in the company if applicable. The individual's name,
    title, how much stock/interest is held, dollar amount of the
    investment and the name, city and state of the financial institution
    for the source of funds invested must be specified. Other
    information such as date and place of birth, social security number
    and residency must be complete and accurate.

-   If any investment comes from a "gift", such as from a father to son,
    all of the information of the person giving the gift must be shown
    on the application, along with the name, Social Security Number,
    date and place of birth, citizenship, gender; other names used and
    residence over the last five years. Please specify whether or not
    the gift giver will have any stock or other interest in the company.

-   A background check will be conducted on all individuals who have
    given gifts that are invested in the new business.

The National Revenue Center is available with advice on how to complete
permit applications and who must be listed on them. Please contact them
at 800-398-2282 (513-644-3337) (e-mail:
<natlrevctr@cinc.atf.treas.gov>). Written correspondence should be sent
to: ATF National Revenue Center, 8002 Federal Office Building, 550 Main
Street, Cincinnati, OH 45202.

#  Regulations Corner  {#regulations-corner .unnumbered}

# Recodification of Part 251, Importation of Distilled Spirits, Wines, and Beer {#recodification-of-part-251-importation-of-distilled-spirits-wines-and-beer .unnumbered}

#  {#section .unnumbered}

# *By Jennifer Berry (716)434-8039* 

ATF published Treasury Decision (T.D.) ATF-479 in the Federal Register
on May 8, 2002. This Final Rule recodifies 27 CFR Part 251, Importation
of Distilled Spirits, Wines, and Beer. As part of continuing efforts to
reorganize the part numbering system and to replace Internal Revenue
Service numbers with ATF numbers, we are redesigning Part 251 and Part
27. This T.D. makes no substantive changes to the import regulations.
The Regulations Division plans to update these regulations in a later
rulemaking project. The recodification is effective May 8, 2002

Delegation of Authority for Part 44

####### By Robert P. Ruhf (202)927-8210

On May 8, 2002, the Federal Register published [a final
rule]{.underline} and a related [ATF delegation order]{.underline} that
concern ATF authorities for Part 44 of Title 27 of the Code of Federal
Regulations. Part 44 contains regulations that govern the export of
tobacco

products and cigarette papers and tubes without payment of tax or
drawback of tax.

This final rule places these authorities with the "appropriate ATF
officer." It also requires people to file documents with the
"appropriate ATF officer" or as instructed by an ATF form required by 27
CFR Part 44.

The related delegation order, ATF Order 1130.31, was published at the
same time as the final rule and is available to the public.

Acceptable Proof Of Exportation

Exporters Can Avoid Tax Liabilities With Proper Documentation

*By Wholesaler/Importer Units (513)684-3337*

We would like to remind exporters of tobacco products, alcoholic
beverages and specially denatured alcohol, that in order to avoid tax
liability, you must provide ATF with acceptable proof of exportation.

Here's how to avoid problems later and make sure the proof of
exportation you submit to ATF will pass the auditing done at ATF's
National Revenue Center:

-   Your **proof** of exportation must be complete, accurate and contain
    all information required by Title 27 Code of Federal Regulations,
    Part 252 (exportation of liquors) and/or Part 290 (exportation of
    tobacco products, cigarette papers and tubes).

-   Export documents must be **verifiable** and come from the originator
    of the transaction. That is, proofs are not accepted form
    subsidiaries. You must obtain US Customs certification when
    required.

-   Make sure the **quantity recorded** is in the correct units, e.g.,
    the certification of quantity of cigarettes received in export
    warehouse should reflect the number of individual units (e.g.
    thousands of cigarettes) -- not cases or packs.

-   Proof of export documents must be **credible**, i.e., created in the
    ordinary course of business at the time of the transaction.

-   Exporters must be able to **trace** a Bill of Lading (BOL) back to
    the merchandise shipped. Quantities shown on the BOL should match
    those reflected on the appropriate export form (e.g., 5200.14/2149
    -- tobacco, 5100.11 -- alcoholic beverages).

-   The **certification** of export must include the title of the person
    signing it. The date and quantity should be entered, as well as a
    reference number for the recipient

(e.g., permit number, foreign trade zone or custom's bonded warehouse's
number).

-   A **difference** in the amount reported exported, and the amount for
    which proof has been provided, can lead to a notice of proposed tax
    assessment to the exporter.

-   ATF will **reject** the export form where the **purpose** of removal
    or withdrawal is not indicated, even if you furnish Custom's or
    other certification.

In some cases, we may require additional information or documentation.
For more information on what types of documents we will accept as proof
for each type of export shipment, please visit our website at:
[www.atf.treas.gov/pub/index.htm#circulars](http://www.atf.treas.gov/pub/index.htm#circulars)

Refer to Industry Circular 2002-2 (July 6, 2000).

Or, contact the National Revenue Center at 800-398-2282 (513-684-3334)
(e-mail: natlrevctr@cinc.atf.treas.gov).

**Tobacco Industry Comments Requested**

######## By Robert Ruhf, (202)927-8200

We have asked the tobacco industry to comment on proposed revisions of
five ATF tobacco forms. One of the proposed revisions combines the
reports completed by manufacturers of tobacco products or of cigarette
papers and tubes. Another revises the report completed by proprietors of
export warehouses (link to website). Two of the ATF forms revise the
applications that we require tobacco product manufacturers and
proprietors of export warehouse to submit.

Through these proposed revisions, we hope to achieve the following
goals:

-   Increase the accuracy of tobacco industry submissions. ATF has
    improved the detail and the language of the instructions and the
    forms.

-   Reduce changes and amendments to comply with requirements through
    complete instructions on the forms.

-   Reduce to refer separate documents about how to complete the forms
    (e.g., the regulations).

For more information about our requests, go to the ATF website at
<http://www.atf.treas.gov/forms/notices.htm>. To get copies of the
proposed ATF forms, contact the Regulations Division at 202-927-8210.
Tobacco industry comments should be sent by the end of July 2002.