Editorial Note on Part 40
Editorial Note: Nomenclature changes to part 40 appear by T.D. ATF-460, 66 FR 39094-39096, July 27, 2001; T.D. ATF-464, 66 FR 43479, Aug. 20, 2001; and T.D. TTB-91, 76 FR 5479, Feb. 1, 2011.

§ 40.521 Record of tobacco and processed tobacco. ( a ) Every manufacturer of processed tobacco and every manufacturer of tobacco products required to obtain authorization to engage in another business within the factory under §§ 40.47(b) and 40.72(b) of this part must keep records of operations and transactions that show the total quantity of all: ( 1 ) Processed tobacco on hand at the beginning of each month;
( 2 ) In the case of a manufacturer of tobacco products, processed tobacco used in the manufacture of tobacco products during each month;
( 3 ) Processed tobacco received, together with the date of receipt and the name and address of the person from whom it was received;
( 4 ) Processed tobacco removed from the factory for shipment to a person holding a TTB permit as a manufacturer of processed tobacco, as a manufacturer of tobacco products, as an importer of processed tobacco, or as an export warehouse proprietor, together with the date of removal and the name and address of the person to whom shipped or delivered;
( 5 ) Processed tobacco removed from the factory for shipment, other than for export, to a person not holding a TTB permit as a manufacturer of processed tobacco, as a manufacturer of tobacco products, as an importer of processed tobacco, or as an export warehouse proprietor, together with the date of removal;
( 6 ) Processed tobacco removed from the factory for export, together with the date of removal;
( 7 ) Processed tobacco removed for any purpose not referred to in paragraphs (a)(4), (5), (6), and (7) of this section, together with the date of removal;
( 8 ) Processed tobacco lost, together with the date and other circumstances of the loss;
( 9 ) Processed tobacco destroyed (either on factory premise or removed from factory premises for destruction), together with the date and other circumstances of the destruction;
( 10 ) Processed tobacco transferred between buildings that are covered under the same permit but that are not located in the same city, town, village, or State; and
( 11 ) Tobacco (unprocessed) on hand at the beginning of each month and used in the manufacture of tobacco products, lost, destroyed, or removed during each month.
( b ) Any manufacturer of processed tobacco and any manufacturer of tobacco products that are required to obtain authorization to engage in another business within the factory under §§ 40.47(b) and 40.72(b) and that engage in removals of processed tobacco described in paragraph (a)(5) or (a)(6) of this section must also keep records that show the following information about each such removal: ( 1 ) The full name and business address (including city and State) of the purchaser (if there is a purchaser) and the full name and business address of the recipient, or personal address if the purchaser or recipient is not a business;
( 2 ) The full name, business address (including city and State), and driver's license number of the person picking up the processed tobacco for delivery;
( 3 ) The license number of the vehicle in which the processed tobacco is removed from the manufacturer's premises;
( 4 ) The street address of the destination (not including any in-transit stops) of the processed tobacco; and
( 5 ) The quantity of processed tobacco in the shipment.
( c ) The entries in the records of removals required under this section must be made for each day by the close of the business day following the day on which the removal occurs. There is no particular format prescribed for the records required under this section (and commercial records may be used) although the required information must be readily ascertainable from the records kept. In the case of a removal under paragraph (a)(5) or (a)(6) of this section that involves shipment by a common carrier, the appropriate TTB officer may approve an alternate method or procedure pursuant to §§ 40.45 or 40.531 through which the manufacturer may keep records regarding the common carrier and its means of tracking (including pick up and delivery) of the shipment in lieu of the information required by paragraphs (b)(2) and (b)(3) of this section.
[T.D. TTB-104, 77 FR 37303, June 21, 2012]