48650 Federal Register / Vol. 74, No. 184 / Thursday, September 24, 2009 / Rules and Regulations 

‘‘significant regulatory action’’ under 

Executive Order 12866; (2) is not a 

‘‘significant rule’’ under DOT regulatory 

Policies and Procedures (44 FR 11034; 

February 26, 1979); and (3) does not 

warrant preparation of a regulatory 

evaluation as the anticipated impact is 

so minimal. For the same reason, the 

FAA certifies that this amendment will 

not have a significant economic impact 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 97 

Air traffic control, Airports, 

Incorporation by reference, and 

Navigation (air). 

Issued in Washington, DC, on September 4, 

2009. 

John M. Allen, 

Director, Flight Standards Service. 

Adoption of the Amendment 

■ Accordingly, pursuant to the authority 

delegated to me, Title 14, Code of 

Federal regulations, Part 97, 14 CFR part 

97, is amended by amending Standard 

Instrument Approach Procedures, 

effective at 0901 UTC on the dates 

specified, as follows: 

PART 97—STANDARD INSTRUMENT 

APPROACH PROCEDURES 

■ 1. The authority citation for part 97 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40103, 40106, 

40113, 40114, 40120, 44502, 44514, 44701, 

44719, 44721–44722. 

■ 2. Part 97 is amended to read as 

follows: 

By amending: § 97.23 VOR, VOR/ 

DME, VOR or TACAN, and VOR/DME 

or TACAN; § 97.25 LOC, LOC/DME, 

LDA, LDA/DME, SDF, SDF/DME; 

§ 97.27 NDB, NDB/DME; § 97.29 ILS, 

ILS/DME, MLS, MLS/DME, MLS/RNAV; 

§ 97.31 RADAR SIAPs; § 97.33 RNAV 

SIAPs; and § 97.35 COPTER SIAPs, 

Identified as follows: 

* * * Effective Upon Publication 

AIRAC date State City Airport FDC No. FDC date Subject 

22–Oct–09 ... IA COUNCIL BLUFFS ............. COUNCIL BLUFFS MUNI ... 9/5812 8/22/2009 RNAV (GPS) RWY 32, ORIG. 

22–Oct–09 ... OK MC ALESTER ..................... MC ALESTER RGNL .......... 9/5892 8/24/2009 VOR/DME RWY 20, AMDT 20C. 

22–Oct–09 ... OK MC ALESTER ..................... MC ALESTER RGNL .......... 9/5904 8/24/2009 LOC RWY 2, AMDT 4A. 

22–Oct–09 ... CO HOLYOKE ........................... HOLYOKE ........................... 9/6789 8/24/2009 RNAV (GPS) RWY 14, ORIG–A. 

22–Oct–09 ... WA BELLINGHAM ..................... BELLINGHAM INTL ............ 9/6999 8/24/2009 RNAV (GPS) RWY 34, ORIG–A. 

22–Oct–09 ... AZ FORT HUACHUCA/SIERRA 

VISTA.

SIERRA VISTA MUNILIBBY AAF.9/7966 9/2/2009 RADAR–1, AMDT 4. 

22–Oct–09 ... AZ FORT HUACHUCA/SIERRA 

VISTA.

SIERRA VISTA MUNILIBBY AAF.9/7967 9/2/2009 RNAV (GPS) RWY 8, ORIG. 

[FR Doc. E9–22072 Filed 9–23–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Parts 40, 41, and 45 

[Docket No. TTB–2009–0002; T.D. TTB–81; 

Re: Notice No. 99, T.D. TTB–78, Notice No. 

95] 

RIN 1513–AB75 

Extension of Package Use-Up Rule for 

Roll-Your-Own Tobacco and Pipe 

Tobacco (2009R–368P) 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Temporary rule; Treasury 

decision. 

SUMMARY: On June 22, 2009, the Alcohol 

and Tobacco Tax and Trade Bureau 

published T.D. TTB–78, which included 

amendments to the notice requirements 

applicable to packages of roll-your-own 

tobacco and pipe tobacco. The 

temporary regulations provided a useup period, until August 1, 2009, for 

manufacturers and importers to 

continue to remove packages that did 

not meet the new notice requirements. 

Those temporary regulations also 

included a new rule governing when a 

product in a package bearing the 

declaration ‘‘pipe tobacco’’ would be 

classified as roll-your-own tobacco for 

tax purposes. This temporary rule 

extends the use-up period and delays 

application of the new classification 

rule. It also corrects two minor errors in 

the previously published regulatory 

texts. We also are soliciting comments 

from all interested parties on these new 

amendments through a notice of 

proposed rulemaking published 

elsewhere in this issue of the Federal 

Register. 

DATES: Effective Date: This temporary 

rule is effective September 24, 2009 

through June 22, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Amy R. Greenberg, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau (202–453–2265). 

SUPPLEMENTARY INFORMATION: 

Background 

On June 22, 2009, the Alcohol and 

Tobacco Tax and Trade Bureau (TTB) 

published a temporary rule in the 

Federal Register (T.D. TTB–78, 74 FR 

29401) to implement certain changes 

made to the Internal Revenue Code of 

1986 by the Children’s Health Insurance 

Program Reauthorization Act of 2009 

(Pub. L. 111–3; 123 Stat. 8) (the Act). 

The regulatory changes made by the 

temporary rule went into effect on June 

22, 2009. In the same issue of the 

Federal Register, TTB published a 

notice of proposed rulemaking (Notice 

No. 95, 74 FR 29433) inviting comments 

on the temporary regulations. 

The temporary rule included new 

requirements regarding the packaging 

and labeling of pipe tobacco and rollyour-own tobacco to distinguish 

between these two products for tax 

purposes and to reflect the expansion of 

the statutory definition of roll-your-own 

tobacco generally to include cigar 

wrapper and filler. Specifically, the 

amendments adopted in the temporary 

rule resulted in the following regulatory 

standards: 

• A package of processed tobacco that 

bears the notice required for pipe 

tobacco is deemed to be roll-your-own 

tobacco if the package does not bear the 

words ‘‘pipe tobacco’’ in direct 

conjunction with, parallel to, and in 

substantially the same conspicuousness 

of type and background as the brand 

name each time the brand name appears 

on the package, or if the package or 

accompanying materials bear any 

representation that would suggest a use 

other than as pipe tobacco. (See 27 CFR 

40.25a(b) and 41.30(b)). 

• Only the words ‘‘pipe tobacco’’ are 

acceptable as a designation on a package 

of pipe tobacco. The words ‘‘Tax Class 

L’’ are no longer authorized as an 

alternative designation. (See 27 CFR 

40.216a(a), 41.72a(a), and 45.45a(a)). 

However, a manufacturer or importer 


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Federal Register / Vol. 74, No. 184 / Thursday, September 24, 2009 / Rules and Regulations 48651 

may, until August 1, 2009, continue to 

remove packages of pipe tobacco that 

bear the designation ‘‘Tax Class L’’, if 

such packages were in use prior to April 

1, 2009. (See 27 CFR 40.216c(a), 

41.72c(a), and 45.45c(a)). 

• Only the words ‘‘roll-your-own 

tobacco’’, ‘‘cigarette tobacco’’, ‘‘cigar 

tobacco’’, ‘‘cigarette wrapper’’, and 

‘‘cigar wrapper’’ are acceptable as 

designations on a package of roll-yourown tobacco. The words ‘‘Tax Class J’’ 

are no longer authorized as an 

alternative designation. (See 27 CFR 

40.216b(a), 41.72b(a), and 45.45b(a)). 

However, a manufacturer or importer 

may, until August 1, 2009, continue to 

remove packages of roll-your-own 

tobacco that bear the designation ‘‘Tax 

Class J’’, if such packages were in use 

prior to April 1, 2009. (See 27 CFR 

40.216c(a), 41.72c(a), and 45.45c(a)). In 

addition, a manufacturer or importer 

may, until August 1, 2009, remove rollyour-own tobacco for which the 

appropriate designation is ‘‘cigar 

tobacco,’’ ‘‘cigarette wrapper,’’ or ‘‘cigar 

wrapper’’ even if the packages of such 

products do not meet the requirements 

of §§ 40.216b, 41.72b, or 45.45b. (See 27 

CFR 40.216c(b), 41.72c(b), and 

45.45c(b)). 

In the preamble to T.D. TTB–78, we 

set forth the rationale for these 

regulatory changes. Among other points, 

we noted that the tax increases adopted 

in section 701 of the Act resulted in a 

significant difference in the rate of tax 

imposed on pipe tobacco ($2.8311 per 

pound) and the rate of tax imposed on 

roll-your-own tobacco ($24.78 per 

pound); prior to the amendments made 

by the Act, the two rates were the same. 

Because of the revenue implications 

resulting from the tax rate changes, we 

stated that we are currently evaluating 

analytical methods and other standards 

to differentiate between the two 

products for tax purposes, as the current 

regulations contain no such standard 

beyond a repeat of the statutory 

definitions. We also noted that the 

definitions of these products require 

consideration of the packaging and 

labeling of the product in order to 

determine its classification. Under 26 

U.S.C. 5702(n), the term ‘‘pipe tobacco’’ 

means any tobacco which, because of its 

appearance, type, packaging, or labeling, 

is suitable for use and likely to be 

offered to, or purchased by, consumers 

as tobacco to be smoked in a pipe. 

Under 26 U.S.C. 5702(o), as amended by 

section 702 of the Act, the term ‘‘rollyour-own tobacco’’ means any tobacco 

which, because of its appearance, type, 

packaging, or labeling, is suitable for use 

and likely to be offered to, or purchased 

by, consumers as tobacco for making 

cigarettes or cigars, or for use as 

wrappers thereof. Accordingly, due to 

the incentive for industry members to 

present roll-your-own tobacco as pipe 

tobacco in the marketplace (and thus 

pay the lower tax rate), and due to the 

inclusion of packaging and labeling as a 

determining factor in the definitions 

(and thus classifications) of these 

products, the packaging and labeling of 

the products must clearly distinguish 

one product from the other. The 

circumstances in which a product is 

deemed to be roll-your-own tobacco 

rather than pipe tobacco in the amended 

texts are intended to ensure that the tax 

collected on the product is consistent 

with the way the product is presented 

to the consumer. 

The inclusion of the terms ‘‘cigar 

wrapper,’’ ‘‘cigarette wrapper,’’ and 

‘‘cigar filler’’ as terms that would be 

acceptable designations on packages of 

roll-your-own merely reflects the 

statutory change to the definition of rollyour-own tobacco. As with the removal 

of the words ‘‘Tax Class J’’ and ‘‘Tax 

Class L’’, the inclusion of these new 

terms is intended to ensure both that the 

product clearly conveys the appropriate 

classification of the product for tax 

purposes and that the manufacturer and 

importer can use as a designation a term 

more specific to the type of product 

being offered. 

The use-up provisions were intended 

to allow industry members time to 

comply with these new requirements 

while, at the same time, minimizing the 

jeopardy to the revenue. 

Comments Received 

In response to Notice No. 95, we have 

received two comments raising concerns 

regarding the classification and notice 

provisions described above, which we 

believe warrant immediate 

consideration. The commenters are 

Kellie L. Newton, who submitted a 

comment on behalf of the Pipe Tobacco 

Council, Inc. (‘‘PTC’’), and Harold N. 

Bynum, who submitted a comment on 

behalf of John Middleton Co. (‘‘JMC’’). 

Both commenters requested that TTB 

extend use-up periods for the notice and 

classification-related requirements that 

apply to pipe tobacco products, 

asserting that the use-up period in the 

temporary regulations (that is, to August 

1, 2009) gave insufficient time for 

manufacturers and importers of pipe 

tobacco to comply with the new 

requirements. 

In its comment, PTC requested that 

TTB extend the period during which 

packaging not in compliance with the 

new regulatory provisions could be used 

to ‘‘at least May 1, 2010.’’ PTC asserted 

that the existing use-up period would 

cause ‘‘substantial irreparable economic 

harm to the manufacturers and 

importers of pipe tobacco.’’ PTC stated 

that the 40 days provided ‘‘is not 

sufficient time for the manufacturers 

and importers of pipe tobacco to fully 

comprehend the required packaging and 

labeling changes, to assess current 

inventory, and to design, order and 

receive new packaging or stickers that 

comply with the required changes.’’ 

PTC stated: (1) It often takes five to six 

months for companies to introduce new 

packaging; (2) the existing use-up period 

could cost the industry as much as 

$2,400,000 to obtain and put into use 

new packaging; (3) extending the use-up 

to May 1, 2010, would still cause the 

industry to incur as much as $1,400,000 

in design, packaging, delivery, and labor 

costs; and (4) additional financial losses 

would include the loss of existing 

inventories of packaging that could not 

be brought into compliance with the 

new provisions. PTC estimated 

significant losses to the U.S. economy if 

manufacturers must stop removing 

product because of issues arising from 

the packaging and labeling 

requirements. The commenter noted 

that, in the past, TTB has provided for 

longer use-up periods when it has 

required the industry to change labels 

and packages of tobacco products. For 

example, on June 29, 2000, TTB’s 

predecessor agency, the Bureau of 

Alcohol, Tobacco and Firearms (ATF) 

published in the Federal Register an 

extension of a compliance date for the 

marking of roll-your-own tobacco, 

thereby adding six months to an original 

four month use-up period. 

In its comment, JMC asserted that the 

classification and notice requirements 

are ‘‘unnecessarily burdensome.’’ JMC 

asked that TTB extend the use-up 

provision related to the notice 

requirement on pipe tobacco packaging 

to allow use of existing packaging 

materials until final rules are adopted. 

With regard to the classification issue, 

JMC pointed out that the provisions set 

forth in §§ 40.25a and 41.30, in which 

the packaging bears on the classification 

of the products in question, were not 

subject to a use-up period in the 

temporary regulations, and JMC asked 

that TTB make a use-up provision 

equally applicable to both the 

classification and notice-related 

packaging provisions. 

According to JMC, very little of the 

pipe tobacco packaging on the market 

on June 22, 2009, met both the new 

notice and classification-related 

marking requirements, and there was no 

indication in the Act that such 

requirements would be forthcoming. 

JMC estimated that it will take 


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48652 Federal Register / Vol. 74, No. 184 / Thursday, September 24, 2009 / Rules and Regulations 

approximately three months or more for 

JMC to develop, print, and move into 

use new packaging materials, at a cost 

in excess of $150,000.00, and JMC 

further stated that the company will 

have in excess of one million pieces of 

packaging materials on hand that will be 

wasted if the use-up period is not 

extended. JMC further noted that, for 

JMC’s last packaging change with TTB 

implications, TTB allowed a one-year 

use up of its previous packaging. JMC 

believes the extension of a use-up 

period until the temporary regulations 

are finalized through publication of a 

final rule is need because of the ‘‘fluid 

nature of rule making’’ under which, 

based on comments received, TTB may 

make changes to the requirements that 

would result in yet another packaging 

change. 

In addition to concerns about the 

length of the use-up period, JMC 

asserted that it is unreasonable for the 

new regulations to apply the use-up 

period only to packages that were in use 

on April 1, 2009, because manufacturers 

may have begun using new packaging 

materials after April 1, 2009, but prior 

to June 22, 2009, unaware of the 

impending changes required by the 

temporary rule. According to JMC, it 

would be legitimate to restrict the useup provision to products that were 

marketed as pipe tobacco prior to the 

passage of the Act. 

JMC further asserted that the 

extension of the use-up provision ‘‘can 

be done in such a way that the revenue 

from roll-your-own tobacco products 

will not be threatened,’’ by applying the 

extension only to products that were 

marketed as pipe tobacco prior to the 

passage of the Act. JMC noted that the 

new regulations also provide that a 

product will be deemed to be roll-yourown tobacco even if it bears a ‘‘pipe 

tobacco’’ notice if the package or 

accompanying materials bear any 

representation that would suggest a use 

other than as pipe tobacco. JMC believes 

that this provision, in combination with 

the application of the extension only to 

products that were sold as pipe tobacco 

prior to the passage of the Act, would 

be adequate to protect the revenue 

‘‘without placing an unreasonable 

burden on established manufacturers of 

pipe tobacco.’’ 

We note that the submission by JMC 

also questioned the new package 

labeling requirements as ‘‘not 

authorized or required by the CHIPRA 

legislation.’’ We are not addressing this 

issue at this time. We will address this 

issue along with other comments 

received in response to Notice No. 95. 

TTB Analysis and Finding 

We have carefully considered the 

above comments, including the 

statements regarding the costs that 

would be incurred by manufacturers 

and importers without an extension of 

the use-up period, and the potential for 

jeopardy to the revenue involved in 

extending the compliance deadline 

under the second use-up rule. We have 

also received and considered requests 

from persons who are engaged in 

business as manufacturers or importers 

of cigar wrappers and who, by virtue of 

the change to the definition of roll-yourown tobacco made by section 702 of the 

Act, only recently came into the TTB 

statutory and regulatory regime. These 

industry members have asked TTB to 

provide an extended use-up period 

applicable to the notice requirements for 

their products. 

Based on the information before us, 

we believe that a persuasive case has 

been made for an extension of the 

periods specified for the use-up rules 

and for delaying application of the new 

classification rule. Accordingly, in this 

document we are amending §§ 40.25a 

and 41.30 to provide that during the 

period from June 22, 2009, through 

March 23, 2010, manufacturers and 

importers may continue to remove 

products as pipe tobacco even though 

the packages do not bear the declaration 

‘‘pipe tobacco’’ with the brand name in 

the manner prescribed in paragraph 

(b)(3)(i) of each of those sections. We are 

also revising the use-up rules in 

§§ 40.216c, 41.72c, and 45.45c to 

provide that during the period from 

June 22, 2009, through March 23, 2010, 

a manufacturer or importer of tobacco 

products may remove packages of pipe 

tobacco or roll-your-own tobacco that do 

not meet the applicable notice 

requirements, provided that such 

packages bear the designation ‘‘Tax 

Class L’’ (to designate pipe tobacco) or 

‘‘Tax Class J’’ (to designate roll-yourown tobacco) and were in use prior to 

June 22, 2009. These revised use-up 

provisions also provide that, during the 

same period, a manufacturer or importer 

may remove roll-your-own tobacco for 

which the applicable designation is 

‘‘cigar tobacco,’’ ‘‘cigarette wrapper,’’ or 

‘‘cigar wrapper’’ even if the packages of 

such products do not meet the 

requirements of §§ 40.216b, 41.72b, or 

45.45b. Thus, these amendments 

provide an extension of the use-up 

period for current packaging that is 

equally applicable to both the 

classification and the notice-related 

packaging provisions. In addition, these 

amendments provide additional time for 

manufacturers and importers to bring 

packaging into compliance with the new 

packaging requirements. 

As the amendments in this document 

reflect, we do not believe it is 

appropriate to extend the date by which 

packages must be brought into 

compliance until May 2010 (as was 

proposed by PTC) or until a final rule 

is published (as was proposed by JMC). 

We believe that the extended use-up 

periods suggested by these commenters 

are too long to be consistent with good 

regulatory practice. In addition, we do 

not believe that the circumstances here 

are sufficiently similar to those of prior, 

longer, use-up periods that the 

commenters described in their 

submissions. 

As was noted in T.D. TTB–78, in the 

present circumstance the classification 

of the products has significant revenue 

implications. The extent to which the 

packaging clearly conveys the use for 

which the product is offered will 

directly affect the assessment of whether 

a product is, because of its packaging or 

labeling, ‘‘likely to be offered to, or 

purchased by, consumers’’ as a pipe 

tobacco or a roll-your-own tobacco. The 

incentive for industry members to 

manipulate the packaging and labeling 

of such products, particularly during the 

period in which TTB is evaluating but 

has not published definitive analytical 

methods or other standards for 

distinguishing between the two 

products, is significant. Earlier 

examples of use-up periods provided by 

TTB or ATF did not have similar 

revenue consequences. For example, the 

extension of the use-up period for rollyour-own tobacco product packages 

published by ATF in the Federal 

Register on June 29, 2000, took place 

when the tax rates imposed on pipe 

tobacco and on roll-your-own tobacco 

were equivalent ($0.9567 per pound). 

We believe that the extended use-up 

period provided in the present 

temporary rule recognizes both the 

financial concerns of industry members 

and the revenue requirements of the Act 

(and the implementation and 

enforcement realities that accompany 

them). 

With regard to the comment by JMC 

concerning the unreasonableness of the 

requirement that packages must have 

been in use prior to April 1, 2009, to 

qualify for continued removal until the 

end of the use-up period, we note that 

the use of the June 22, 2009, date in the 

amended regulatory texts contained in 

this document address that concern. 

This change conforms the start of the 

new use-up period to the date of the 

publication of T.D. TTB–78 (that is, June 

22, 2009). It also obviates the need to 

address the suggestion of JMC to apply 


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Federal Register / Vol. 74, No. 184 / Thursday, September 24, 2009 / Rules and Regulations 48653 

the use-up provision only to products 

that were marketed as pipe tobacco 

prior to the passage of the Act. 

Finally, we note that the temporary 

regulations adopted in T.D. TTB–78 

contained two minor errors of omission, 

which this document corrects. 

Specifically, we are amending 27 CFR 

41.81(c)(6) and (7) to bring those 

provisions, which concern information 

on pipe tobacco and roll-your-own 

tobacco that importers must include on 

customs forms or in authorized 

electronic transmissions, into 

conformity with the amendments that 

T.D. TTB–78 made to the notice 

requirements for such products. In 

§ 41.81(c)(6), we have removed the term 

‘‘Tax Class L’’ as a designation for pipe 

tobacco. In § 41.81(c)(7), we have 

removed the term ‘‘Tax Class J’’ as a 

designation for roll-your-own tobacco 

and have added the other acceptable 

designations for roll-your-own tobacco: 

‘‘cigarette tobacco’’, ‘‘cigarette 

wrapper’’, ‘‘cigar tobacco’’, or ‘‘cigar 

wrapper’’. 

Temporary Rule 

Based on the June 22, 2009, effective 

date of the package and notice 

provisions which are the subject of the 

regulatory changes contained in this 

document, and based on the need to 

extend the August 1, 2009, termination 

date of the use-up provisions and to 

delay application of the new 

classification rule as discussed above, 

TTB believes that it is necessary to 

adopt these regulatory changes 

immediately. 

Public Participation 

To submit comments on this proposal, 

please refer to the notice of proposed 

rulemaking, Notice No. 99, published in 

the ‘‘Proposed Rules’’ section of this 

issue of the Federal Register. 

You may view copies of all the 

CHIPRA-related rulemaking documents 

and any comments we receive about 

them within Docket No. TTB–2009– 

0002 at http://www.regulations.gov. A 

direct link to this docket is posted on 

the TTB Web site at http://www.ttb.gov/ 

tobacco/tobacco-rulemaking.shtml 

under Notice No. 99. You also may view 

copies of those rulemaking documents 

and comments by appointment at the 

TTB Information Resource Center, 1310 

G Street, NW., Washington, DC 20220. 

Please call 202–453–2270 to make an 

appointment. 

Regulatory Flexibility Act 

We certify that this temporary rule 

will not have a significant economic 

impact on a substantial number of small 

entities. Accordingly, a regulatory 

flexibility analysis is not required. The 

regulatory obligations and relevant 

collections of information which are the 

subject of this temporary rule derive 

directly from the Internal Revenue Code 

of 1986, as amended. Likewise, any 

secondary or incidental effects, and any 

reporting, recordkeeping, or other 

compliance burdens flow directly from 

the statute. Pursuant to 26 U.S.C. 

7805(f), this temporary regulation will 

be submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small businesses. 

Paperwork Reduction Act 

TTB has provided estimates of the 

burden that the collection of 

information contained in these 

regulations imposes, and the estimated 

burden has been reviewed and approved 

by the Office of Management and 

Budget (OMB) in accordance with the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3507) and assigned control 

number 1513–0101. 

Under the Paperwork Reduction Act 

of 1995, an agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid OMB control 

number. Comments concerning 

suggestions for reducing the burden of 

the collections of information in this 

document should be directed to Mary A. 

Wood, Alcohol and Tobacco Tax and 

Trade Bureau, at any of these addresses: 

• P.O. Box 14412, Washington, DC 

20044–4412; 

• 202–453–2686 (facsimile); or 

• formcomments@ttb.gov (e-mail). 

Executive Order 12866 

This is not a significant regulatory 

action as defined in E.O. 12866. 

Therefore, it requires no regulatory 

assessment. 

Inapplicability of Prior Notice and 

Comment and Delayed Effective Date 

Procedures 

Because this document makes 

necessary changes to regulatory 

provisions that are already in effect, and 

because these changes are needed 

immediately to avoid unintended 

negative consequences on industry 

members arising out of the existing 

regulations, it is found to be 

impracticable to issue this Treasury 

decision with notice and public 

procedure under 5 U.S.C. 553(b). 

Pursuant to the provisions of 5 U.S.C. 

553(d)(2), and (d)(3), we are issuing 

these regulatory amendments without a 

delayed effective date. These 

amendments affect regulatory 

provisions that TTB adopted as an 

interpretative rule implementing Public 

Law 111–3 as provided for in section 

553(d)(2). TTB also has determined that 

good cause exists to provide industry 

members with immediate relief from the 

unintended consequences of the 

existing regulations, in accordance with 

section 553(d)(3). 

Drafting Information 

Amy R. Greenberg of the Regulations 

and Rulings Division, Alcohol and 

Tobacco Tax and Trade Bureau, drafted 

this document. 

List of Subjects 

27 CFR Part 40 

Cigars and cigarettes, Claims, 

Electronic funds transfers, Excise taxes, 

Imports, Labeling, Packaging and 

containers, Reporting and recordkeeping 

requirements, Surety bonds, Tobacco. 

27 CFR Part 41 

Cigars and cigarettes, Claims, Customs 

duties and inspection, Electronic funds 

transfers, Excise taxes, Imports, 

Labeling, Packaging and containers, 

Puerto Rico, Reporting and 

recordkeeping requirements, Surety 

bonds, Tobacco, Virgin Islands, 

Warehouses. 

27 CFR Part 45 

Administrative practice and 

procedure, Authority delegations 

(Government agencies), Cigars and 

cigarettes, Excise taxes, Labeling, 

Packaging and containers, Reporting 

and recordkeeping requirements, 

Tobacco. 

Amendments to the Regulations 

■ For the reasons set forth in the 

preamble, title 27, chapter I, of the Code 

of Federal Regulations is amended as 

follows: 

PART 40—MANUFACTURE OF 

TOBACCO PRODUCTS, CIGARETTE 

PAPERS AND TUBES, AND 

PROCESSED TOBACCO 

■ 1. The authority citation for part 40 

continues to read as follows: 

Authority: 26 U.S.C. 5142, 5143, 5146, 

5701–5705, 5711–5713, 5721–5723, 5731, 

5741, 5751, 5753, 5761–5763, 6061, 6065, 

6109, 6151, 6301, 6302, 6311, 6313, 6402, 

6404, 6423, 6676, 6806, 7011, 7212, 7325, 

7342, 7502, 7503, 7606, 7805; 31 U.S.C. 9301, 

9303, 9304, 9306. 

■ 2. In § 40.25a, paragraph (b)(3) is 

amended by removing the words ‘‘Any 

tobacco’’ and adding, in their place, the 

words ‘‘Subject to paragraph (b)(4) of 

this section, any tobacco’’, and a new 

paragraph (b)(4) is added to read as 

follows: 


cprice-sewell on DSK2BSOYB1PROD with RULES
48654 Federal Register / Vol. 74, No. 184 / Thursday, September 24, 2009 / Rules and Regulations 

§ 40.25a Pipe tobacco and roll-your-own 

tobacco tax rates and classification. 

* * * * * 

(b) * * * 

(4) During the period from June 22, 

2009, through March 23, 2010, 

manufacturers may continue to remove 

products as pipe tobacco in packages 

that do not bear the declaration ‘‘pipe 

tobacco’’ in the manner prescribed in 

paragraph (b)(3)(i) of this section. 

■ 3. Section 40.216c is revised to read 

as follows: 

§ 40.216c Package use-up rule. 

(a) During the period from June 22, 

2009, through March 23, 2010, a 

manufacturer of tobacco products may 

remove packages of pipe tobacco or rollyour-own tobacco that do not meet the 

requirements of § 40.216a(a) or 

§ 40.216b(a), provided that such 

packages bear the designation ‘‘Tax 

Class L’’ (to designate pipe tobacco) or 

‘‘Tax Class J’’ (to designate roll-yourown tobacco) and were in use prior to 

June 22, 2009. 

(b) During the period from June 22, 

2009, through March 23, 2010, a 

manufacturer may remove roll-yourown tobacco for which the applicable 

designation is ‘‘cigar tobacco,’’ 

‘‘cigarette wrapper,’’ or ‘‘cigar wrapper’’ 

even if the packages of such products do 

not meet the requirements of § 40.216b. 

PART 41—IMPORTATION OF 

TOBACCO PRODUCTS, CIGARETTE 

PAPERS AND TUBES, AND 

PROCESSED TOBACCO 

■ 4. The authority citation for part 41 

continues to read as follows: 

Authority: 26 U.S.C. 5701–5705, 5708, 

5712, 5713, 5721–5723, 5741, 5754, 5761– 

5763, 6301, 6302, 6313, 6402, 6404, 7101, 

7212, 7342, 7606, 7651, 7652, 7805; 31 U.S.C. 

9301, 9303, 9304, 9306. 

■ 5. In § 41.30, paragraph (b)(3) is 

amended by removing the words ‘‘Any 

tobacco’’ and adding, in their place, the 

words ‘‘Subject to paragraph (b)(4) of 

this section, any tobacco’’, and a new 

paragraph (b)(4) is added to read as 

follows: 

§ 41.30 Pipe tobacco and roll-your-own 

tobacco. 

* * * * * 

(b) * * * 

(4) During the period from June 22, 

2009, through March 23, 2010, 

importers may continue to remove 

products as pipe tobacco in packages 

that do not bear the declaration ‘‘pipe 

tobacco’’ in the manner prescribed in 

paragraph (b)(3)(i) of this section. 

■ 6. Section 41.72c is revised to read as 

follows: 

§ 41.72c Package use-up rule. 

(a) During the period from June 22, 

2009, through March 23, 2010, an 

importer of tobacco products may 

remove packages of pipe tobacco or rollyour-own tobacco that do not meet the 

requirements of § 41.72a(a) or 

§ 41.72b(a), provided that such packages 

bear the designation ‘‘Tax Class L’’ (to 

designate pipe tobacco) or ‘‘Tax Class J’’ 

(to designate roll-your-own tobacco) and 

were in use prior to June 22, 2009. 

(b) During the period from June 22, 

2009, through March 23, 2010, an 

importer may remove roll-your-own 

tobacco for which the applicable 

designation is ‘‘cigar tobacco,’’ 

‘‘cigarette wrapper,’’ or ‘‘cigar wrapper’’ 

even if the packages of such products do 

not meet the requirements of § 41.72b. 

■ 7. In § 41.81, paragraphs (c)(6) and 

(c)(7) are revised to read as follows: 

§ 41.81 Taxpayment. 

* * * * * 

(c) * * * 

(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. 

* * * * * 

PART 45—REMOVAL OF TOBACCO 

PRODUCTS AND CIGARETTE PAPERS 

AND TUBES, WITHOUT PAYMENT OF 

TAX, FOR USE OF THE UNITED 

STATES 

■ 8. The authority citation for part 45 

continues to read as follows: 

Authority: 26 U.S.C. 5702–5705, 5723, 

5741, 5751, 5762, 5763, 6313, 7212, 7342, 

7606, 7805; 44 U.S.C. 3504(h). 

■ 9. Section 45.45c is revised to read as 

follows: 

§ 45.45c Package use-up rule. 

(a) During the period from June 22, 

2009, through March 23, 2010, a 

manufacturer of tobacco products may 

remove packages of pipe tobacco or rollyour-own tobacco that do not meet the 

requirements of § 45.45a(a) or 

§ 45.45b(a), provided that such packages 

bear the designation ‘‘Tax Class L’’ (to 

designate pipe tobacco) or ‘‘Tax Class J’’ 

(to designate roll-your-own tobacco)) 

and were in use prior to June 22, 2009. 

(b) During the period from June 22, 

2009, through March 23, 2010, a 

manufacturer may remove roll-yourown tobacco for which the applicable 

designation is ‘‘cigar tobacco,’’ 

‘‘cigarette wrapper,’’ or ‘‘cigar wrapper’’ 

even if the packages of such products do 

not meet the requirements of § 45.45b. 

Signed: August 23, 2009. 

John J. Manfreda, 

Administrator. 

Approved: September 4, 2009. 

Timothy E. Skud, 

Deputy Assistant Secretary, Tax, Trade, and 

Tariff Policy. 

[FR Doc. E9–23180 Filed 9–23–09; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2009–0755] 

RIN 1625–AA00 

Safety Zone: Robert Moses Causeway 

Bridge State Boat Channel, Captree, 

NY 

AGENCY: Coast Guard, DHS. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone for 

the waters of the State Boat Channel 

surrounding the Robert Moses 

Causeway located in Captree, New York 

due to ongoing construction. This rule 

is necessary to protect vessels transiting 

the area from hazards imposed by 

construction barges and equipment; 

entry into this zone is prohibited unless 

authorized by the Captain of the Port 

Long Island Sound, New Haven, CT. 

DATES: This interim rule is effective 

from September 24, 2009 until May 

28th, 2010. The safety zone has been 

enforced with actual notice since 

September 8, 2009. Comments and 

related material must reach the Coast 

Guard on or before November 9, 2009. 

Requests for public meetings must be 

received by the Coast Guard on or before 

October 1, 2009. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2009–0755 using any one of the 

following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Fax: 202–493–2251. 

(3) Mail: Docket Management Facility 

(M–30), U.S. Department of 


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