Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Proposed Rules 52937 

with the provisions governing the 

program involved, if the participant 

does not meet the applicable SSN 

disclosure, documentation, and 

verification requirements specified in 

§ 5.216. 

(2) The processing entity may defer 

termination and provide the participant 

with an additional 90 days to disclose 

a SSN, but only if unless the processing 

entity, in its discretion, determines that: 

(i) The failure to meet these 

requirements was due to circumstances 

that could not have reasonably been 

foreseen and were outside the control of 

the participant; and 

(ii) There is a reasonable likelihood 

that the participant will be able to 

disclose a SSN by the deadline. 

(3) Failure of the participant to 

disclose a SSN by the deadline specified 

in paragraph (c)(2) of this section will 

result in termination of the assistance or 

tenancy, or both, of the participant. 

* * * * * 

4. Add a new § 5.233 to read as 

follows: 

§ 5.233 Mandated use of HUD’s Enterprise 

Income Verification (EIV) System. 

(a) Programs subject to this section 

and requirements. (1) The requirements 

of this section apply to entities 

administering assistance under the: 

(i) Public Housing program under 24 

CFR part 960; 

(ii) Section 8 Housing Choice Voucher 

(HCV) program under 24 CFR part 982; 

(iii) Moderate Rehabilitation program 

under 24 CFR part 882; 

(iv) Project-based Voucher program 

under 24 CFR part 983; 

(v) Project-based Section 8 programs 

under 24 CFR parts 880, 881, 883, 884, 

886, and 891; 

(vi) Section 202 of the Housing Act of 

1959 (12 U.S.C. 1701q); 

(vii) Section 811 of the CranstonGonzalez National Affordable Housing 

Act (42 U.S.C. 8013); 

(viii) Sections 221(d)(3) and 236 of the 

National Housing Act (12 U.S.C. 

1715l(d)(3) and 1715z–1); and 

(ix) Rent Supplement program under 

section 101 of the Housing and Urban 

Development Act of 1965 (12 U.S.C. 

1701s). 

(2) Processing entities must use 

HUD’s EIV system in its entirety: 

(i) As a third-party source to verify 

tenant employment and income 

information during mandatory 

reexaminations or recertifications of 

family composition and income, in 

accordance with § 5.236 and 

administrative guidance issued by HUD; 

and 

(ii) To reduce administrative and 

subsidy payment errors in accordance 

with HUD administrative guidance. 

(b) Penalties for noncompliance. 

Failure to use the EIV system in its 

entirety may result in the imposition of 

sanctions and/or the assessment of 

disallowed costs associated with any 

resulting incorrect subsidy or tenant 

rent calculations, or both. 

§ 5.236 [Amended] 

5. In § 5.236(b)(3)(i)(A), remove 

‘‘215’’. 

PART 908—ELECTRONIC 

TRANSMISSION OF REQUIRED 

FAMILY DATA FOR PUBLIC HOUSING, 

INDIAN HOUSING, AND THE SECTION 

8 RENTAL CERTIFICATE, RENTAL 

VOUCHER, AND MODERATE 

REHABILITATION PROGRAMS 

6. The authority citation for part 908 

continues to read as follows: 

Authority: 42 U.S.C. 1437f, 3535d, 3543, 

3544, and 3608a. 

7. Revise § 908.101 to read as follows: 

§ 908.101 Purpose. 

The purpose of this part is to require 

Public Housing Agencies (PHAs), 

including Moving to Work (MTW) 

PHAs, that operate Public Housing, 

Indian Housing, or Section 8 Rental 

Certificate, Housing Choice Voucher 

(HCV), Rental Voucher, and Moderate 

Rehabilitation programs to 

electronically submit certain data to 

HUD for those programs. These 

electronically submitted data are 

required for HUD forms: HUD–50058, 

including the Family Self-Sufficiency 

(FSS) Addendum. Applicable program 

entities must retain at a minimum, the 

last three years of the form HUD–50058, 

and supporting documentation, during 

the term of each assisted lease, and for 

a period of at least 3 years from the end 

of participation (EOP) date, to support 

billings to HUD and to permit an 

effective audit. Electronic retention of 

form HUD–50058 and HUD–50058–FSS 

and supporting documentation fulfills 

the retention requirement under this 

section. 

Dated: September 23, 2009. 

Shaun Donovan, 

Secretary. 

[FR Doc. E9–24809 Filed 10–14–09; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Parts 28 and 44 

[Docket No. TTB–2009–0005; Notice No. 

100] 

RIN 1513–AB77 

Drawback of Internal Revenue Taxes 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau proposes to amend its 

regulations to clarify the relationship 

between tax payment under the Internal 

Revenue Code of 1986 and drawback of 

tax under the Tariff Act of 1930. The 

proposal provides conforming 

amendments to reflect proposed 

Customs and Border Protection 

regulations stating that domestic 

merchandise on which no tax is paid 

under the Internal Revenue Code may 

not be substituted for imported 

merchandise for purposes of claims for 

drawback of tax under the customs laws 

and regulations. 

DATES: We must receive your written 

comments on or before December 14, 

2009. 

ADDRESSES: You may send comments on 

this notice to one of the following 

addresses: 

• http://www.regulations.gov: Use the 

comment form for this notice on the 

Federal e-rulemaking portal, 

Regulations.gov, to submit comments 

via the Internet; 

• Mail: Director, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, P.O. Box 14412, 

Washington, DC 20044–4412. 

• Hand Delivery/Courier in Lieu of 

Mail: Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street, NW., Suite 

200–E, Washington, DC 20005. 

See the Public Participation section of 

this notice for specific instructions and 

requirements for submitting comments, 

and for information on how to request 

a public hearing. 

You may view copies of this notice, 

selected supporting materials, and the 

comments we receive about this 

proposal within Docket No. TTB–2009– 

0005 at http://www.regulations.gov. A 

direct link to this docket is posted on 

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

regulations_laws/all_rulemaking.shtml 

under Notice No. 100. You also may 

view copies of this notice, all 

supporting materials, and the comments 

we receive about this proposal by 


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52938 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Proposed Rules 

appointment at the TTB Information 

Resource Center, 1310 G Street, NW., 

Washington, DC 20220. Please call 202– 

453–2270 to make an appointment. 

FOR FURTHER INFORMATION CONTACT: 

Gerry Isenberg, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street, NW., Suite 

200–E, Washington, DC 20220; 

telephone 202–453–2097. 

SUPPLEMENTARY INFORMATION: 

Background 

Taxation of Distilled Spirits, Wines, 

Beer, and Tobacco Products Under the 

Internal Revenue Code of 1986 

Chapter 51 of the Internal Revenue 

Code of 1986 (IRC) sets forth excise tax 

collection and related provisions 

applicable to distilled spirits, wines, 

and beer. Chapter 52 of the IRC contains 

similar provisions applicable to tobacco 

products and cigarette papers and tubes. 

Under Chapter 51, a Federal excise 

tax is imposed on all wines and distilled 

spirits produced in or imported into the 

United States. 26 U.S.C. 5001, 5041. A 

Federal excise tax also is imposed on 

beer brewed or produced, and removed 

for consumption or sale within the 

United States, or imported into the 

United States. 26 U.S.C. 5051. For 

domestically-produced wine, the tax is 

imposed at the conclusion of 

fermentation or removal from the 

fermenter (see 27 CFR 24.176). For 

domestically-produced distilled spirits, 

the tax is imposed at the time that the 

product comes into existence. 26 U.S.C. 

5001(b). For domestically-produced 

beer, the tax is imposed when the 

product is removed for consumption or 

sale. 26 U.S.C. 5051. For imported wine, 

distilled spirits, and beer, the tax is 

imposed when the product is imported 

into the United States. 

However, Federal excise taxes on 

imported and domestically-produced 

wine, distilled spirits, and beer are 

generally not paid or determined until 

the products are removed from bonded 

premises or from customs custody for 

consumption or sale. 26 U.S.C. 5041, 

5061, 5006, 5007, 5054. Domesticallyproduced wine, distilled spirits, and 

beer may be exported without payment 

of the Federal excise tax. 26 U.S.C. 

5362(c), 5214(a), 5053. In addition, on 

the exportation of domesticallyproduced wine, distilled spirits, or beer 

that was removed from bonded premises 

with payment of tax, drawback is 

allowed in an amount equal to the tax 

paid. 26 U.S.C. 5062, 5055. 

Under Chapter 52, a Federal excise 

tax is imposed on all tobacco products 

and cigarette papers and tubes 

manufactured in or imported into the 

United States. 26 U.S.C. 5701. The tax 

on domestically-produced tobacco 

products and cigarette papers and tubes 

is imposed at the time that the product 

comes into existence, that is, when a 

product meets one of the definitions 

under the IRC. The Federal excise tax on 

imported and domestically-produced 

tobacco products and cigarette papers 

and tubes is generally not paid or 

determined until the products are 

released from customs custody or 

removed from bonded premises. 26 

U.S.C. 5702, 5703. Tobacco products 

and cigarette papers and tubes may be 

removed from bonded premises, 

without the payment of Federal excise 

tax, for export. 26 U.S.C. 5704. 

Regulations implementing the 

provisions of Chapters 51 and 52 of the 

IRC are contained in 27 CFR chapter 1. 

The Alcohol and Tobacco Tax and 

Trade Bureau (TTB) within the 

Department of the Treasury is 

responsible for the administration of 

Chapters 51 and 52 and the regulations 

promulgated thereunder. 

Drawback Under the Tariff Act of 1930 

Section 313 of the Tariff Act of 1930, 

as amended (19 U.S.C. 1313), provides 

for the drawback or refund of duties, 

taxes, and fees paid on imported 

merchandise if that merchandise is 

subsequently exported or destroyed 

under customs supervision. Paragraph 

(2) of subsection (j), hereafter referred to 

as ‘‘(j)(2) drawback,’’ permits the 

substitution of other merchandise for 

the imported merchandise for purposes 

of the exportation or destruction 

requirement. 

Specifically, the (j)(2) drawback 

provision allows the payment of 

drawback, not to exceed 99 percent of 

the duties, taxes, and fees paid on the 

imported merchandise, based on the 

exportation or destruction of ‘‘any other 

merchandise (whether imported or 

domestic)’’ that: (1) Is commercially 

interchangeable with the imported 

merchandise on which duties, taxes, 

and fees were paid, (2) is exported or 

destroyed within 3 years of the date of 

importation of the imported 

merchandise, and (3) before such 

exportation or destruction, is not used 

within the United States and is in the 

possession of the party claiming 

drawback, that is, either the importer of 

the imported merchandise or a person 

who receives from the importer a 

certificate of delivery transferring to that 

person the imported merchandise or 

commercially interchangeable 

merchandise or any combination of the 

two (and with the transferred 

merchandise being treated as the 

imported merchandise). The (j)(2) 

drawback provision also includes a 

standard for commercial 

interchangeability for wine, that is, 

‘‘wine of the same color having a price 

variation not to exceed 50 percent 

between the imported wine and the 

exported wine.’’ 

Regulations implementing section 313 

are set forth in 19 CFR part 191. Subpart 

C of part 191 concerns unused 

merchandise drawback and includes, in 

§ 191.32, standards applicable to (j)(2) 

drawback claims. The Bureau of 

Customs and Border Protection (CBP) is 

responsible for the administration of 

section 313 and the regulations 

promulgated thereunder. 

Proposed CBP and TTB Regulatory 

Changes 

In recent years CBP has received and 

approved a number of (j)(2) drawback 

claims involving imported bottled and 

bulk wine and domestically-produced 

wine. A hypothetical example of how 

such a transaction could work is as 

follows: A domestic winery imports 100 

cases of bottled wine, pays Federal 

excise tax on the wine, and sells the 

imported wine in the United States; the 

domestic winery then exports 100 cases 

of its domestic wine without payment of 

Federal excise tax; the domestic winery 

then files a (j)(2) drawback claim with 

CBP, on the basis that the 100 cases of 

domestically-produced wine are 

commercially interchangeable with the 

100 cases of imported wine; and, finally, 

the domestic winery receives a refund of 

99 percent of the Federal excise taxes 

that it paid on the 100 cases of imported 

wine. 

In the scenario described above, only 

1 percent of the Federal excise tax on 

the imported wine is ultimately 

received into the U.S. Treasury. Thus, 

(j)(2) drawback in effect allows imported 

wine to be introduced into the U.S. 

market 99 percent free of Federal excise 

tax. Although the (j)(2) drawback claims 

involving the drawback or refund of IRC 

tax that CBP has processed have been 

limited to wine, under the present 

statutory and regulatory framework, 

other products that are subject to excise 

tax under IRC Chapters 51 and 52 could 

be the subject of claims for (j)(2) 

drawback. 

Based on a review of the applicable 

statutory provisions, the Department of 

the Treasury has concluded that the 

practice of allowing (j)(2) drawback 

claims in circumstances in which 

internal revenue taxes have not been 

paid on the substituted domestic 

product is incompatible with the intent 

of Congress in levying excise taxes 

under the IRC and extends beyond the 

intent of Congress for administering 


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Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Proposed Rules 52939 

drawback under the comprehensive 

framework of section 313. In order to 

address these concerns, CBP in a 

document published in this issue of the 

Federal Register is proposing to amend 

its regulations to preclude the filing of 

a claim covering drawback of tax under 

subsection (j)(2) if no tax was paid on 

the substituted domestically-produced 

merchandise. 

In view of the relationship between 

(j)(2) drawback claims and excise tax 

liability under Chapters 51 and 52 of the 

IRC as discussed above and as reflected 

in the proposed new CBP regulatory 

texts, TTB believes that it would be 

appropriate to add to the TTB 

regulations conforming amendments 

that alert the reader to the effect of the 

new CBP regulatory provision as regards 

alcohol and tobacco products exported 

without payment of tax or with 

drawback of tax. TTB notes in this 

regard that the IRC vests broad authority 

in the Secretary of the Treasury to 

promulgate regulations governing the 

removal of alcohol and tobacco products 

for export without payment of tax in 

order to ensure protection of the 

revenue. See 26 U.S.C. 5053 for beer, 

5214(a) for distilled spirits, 5362(c) for 

wine, and 5704 for tobacco products. 

Furthermore, the IRC vests broad 

authority in the Secretary of the 

Treasury to promulgate regulations 

needed for the enforcement of the IRC. 

See 26 U.S.C. 7805(a). TTB believes that 

the proposed conforming amendments 

are needed to contribute to the 

enforcement and integrity of the excise 

tax system. 

Accordingly, this document proposes 

six amendments to part 28 of the TTB 

regulations (27 CFR part 28), which 

contains rules regarding the exportation 

of distilled spirits, wine, and beer 

without payment of tax and with 

drawback of tax. Similarly, this 

document proposes two amendments to 

part 44 of the TTB regulations (27 CFR 

part 44), which contains rules regarding 

the exportation of tobacco products and 

cigarette papers and tubes without 

payment of tax and with drawback of 

tax. Although the only substantive text 

change in each affected section involves 

the addition of a reference to the new 

CBP rule, in several cases the entire 

section is revised in order to eliminate 

the use of undesignated introductory 

and concluding text and thus facilitate 

addition of the new provision. 

Public Participation 

Comments Invited 

We invite comments from interested 

members of the public on this proposed 

rulemaking. Please submit your 

comments by the closing date shown 

above in this notice. Your comments 

must reference Notice No. 100 and 

include your name and mailing address. 

Your comments also must be made in 

English, be legible, and be written in 

language acceptable for public 

disclosure. We do not acknowledge 

receipt of comments, and we consider 

all comments as originals. 

Submitting Comments 

You may submit comments on this 

notice by using one of the following 

three methods: 

• Federal e-Rulemaking Portal: You 

may send comments via the online 

comment form associated with this 

notice in Docket No. TTB–2009–0005 on 

‘‘Regulations.gov,’’ the Federal 

e-rulemaking portal, at http:// 

www.regulations.gov. A link to that 

docket is available under Notice No. 100 

on the TTB Web site at http:// 

www.ttb.gov/regulations_laws/ 

all_rulemaking.shtml. Supplemental 

files may be attached to comments 

submitted via Regulations.gov. For 

information on how to use 

Regulations.gov, click on the site’s Help 

or FAQ tabs. 

• U.S. Mail: You may send comments 

via postal mail to the Director, 

Regulations and Rulings Division, 

Alcohol and Tobacco Tax and Trade 

Bureau, P.O. Box 14412, Washington, 

DC 20044–4412. 

• Hand Delivery/Courier: You may 

hand-carry your comments or have them 

hand-carried to the Alcohol and 

Tobacco Tax and Trade Bureau, 1310 G 

Street, NW., Suite 200–E, Washington, 

DC 20005. 

If you are commenting on behalf of an 

association, business, or other entity, 

your comment must include the entity’s 

name as well as your name and position 

title. If you comment via 

Regulations.gov, please include the 

entity’s name in the ‘‘Organization’’ 

blank of the comment form. If you 

comment via postal mail, please submit 

your entity’s comment on letterhead. 

You may also write to the 

Administrator before the comment 

closing date to ask for a public hearing. 

The Administrator reserves the right to 

determine whether to hold a public 

hearing. 

Confidentiality 

All submitted comments and 

attachments are part of the public record 

and subject to disclosure. Do not 

enclose any material in your comments 

that you consider to be confidential or 

that is inappropriate for public 

disclosure. 

Public Disclosure 

On the Federal e-rulemaking portal, 

Regulations.gov, we will post, and the 

public may view, copies of this notice, 

selected supporting materials, and any 

electronic or mailed comments we 

receive about this proposal. A direct 

link to the Regulations.gov docket 

containing this notice and the posted 

comments received on it is available on 

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

regulations_laws/all_rulemaking.shtml 

under Notice No. 100. You may also 

reach the docket containing this notice 

and the posted comments received on it 

through the Regulations.gov search page 

at http://www.regulations.gov. 

All posted comments will display the 

commenter’s name, organization (if 

any), city, and State, and, in the case of 

mailed comments, all address 

information, including e-mail addresses. 

We may omit voluminous attachments 

or material that we consider unsuitable 

for posting. 

You and other members of the public 

may view copies of this notice, any 

supporting materials, and any electronic 

or mailed comments we receive about 

this proposal by appointment at the TTB 

Information Resource Center, 1310 G 

Street, NW., Washington, DC 20220. 

You may also obtain copies at 20 cents 

per 8.5 x 11-inch page. Contact our 

information specialist at the above 

address or by telephone at 202–453– 

2270 to schedule an appointment or to 

request copies of comments or other 

materials. 

Regulatory Analysis and Notices 

Executive Order 12866 

This proposed rule is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. 

Regulatory Flexibility Act 

Pursuant to the requirements of the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6), we certify that this notice of 

proposed rulemaking will not have a 

significant economic impact on a 

substantial number of small entities. 

The proposed rule imposes no 

substantive requirements and therefore 

will not impose, or otherwise cause, a 

significant increase in reporting, 

recordkeeping, or other compliance 

burdens on a substantial number of 

small entities. Accordingly, a regulatory 

flexibility analysis is not required. 

Drafting Information 

Francis W. Foote of the Regulations 

and Rulings Division drafted this 

document. 


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52940 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Proposed Rules 

List of Subjects 

27 CFR Part 28 

Aircraft, Alcohol and alcoholic 

beverages, Armed forces, Beer, Claims, 

Excise taxes, Exports, Foreign trade 

zones, Labeling, Liquors, Packaging and 

containers, Reporting and recordkeeping 

requirements, Surety bonds, Vessels, 

Warehouses, Wine. 

27 CFR Part 44 

Aircraft, Armed forces, Cigars and 

cigarettes, Claims, Customs duties and 

inspection, Excise taxes, Exports, 

Foreign trade zones, Labeling, Packaging 

and containers, Reporting and 

recordkeeping requirements, Surety 

bonds, Tobacco, Vessels, Warehouses. 

Authority and Issuance 

For the reasons explained in the 

preamble, TTB proposes to amend 

chapter I of title 27 of the Code of 

Federal Regulations as follows: 

PART 28—EXPORTATION OF 

ALCOHOL 

1. The authority citation for part 28 is 

revised to read as follows: 

Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 

1202; 26 U.S.C. 5001, 5007, 5008, 5041, 5051, 

5053, 5054, 5061, 5111, 5112, 5114, 5121, 

5122, 5124, 5201, 5205, 5207, 5214, 5232, 

5273, 5301, 5313, 5362, 5555, 6302, 7805; 27 

U.S.C. 203, 205; 44 U.S.C. 3504(h). 

2. Section 28.91 is amended by 

adding a new paragraph (c) to read as 

follows: 

§ 28.91 General. 

* * * * * 

(c) Distilled spirits withdrawn 

without payment of tax under this 

subpart may not be substituted for 

imported merchandise for purposes of 

drawback of tax under section 313(j)(2) 

of the Tariff Act of 1930, as amended 

(19 U.S.C. 1313(j)(2)). See 19 CFR 

191.32(b)(4). 

3. Section 28.121 is revised to read as 

follows: 

§ 28.121 General. 

(a) Wine may, subject to this part, be 

withdrawn from a bonded wine cellar, 

without payment of tax, for: 

(1) Exportation; 

(2) Use on the vessels and aircraft 

described in § 28.21; 

(3) Transfer to and deposit in a 

foreign-trade zone for exportation or for 

storage pending exportation; 

(4) Transfer to and deposit in a 

customs bonded warehouse as provided 

in § 28.27; or 

(5) Transportation to and deposit in a 

manufacturing bonded warehouse. 

(b) All such withdrawals shall be 

made under the applicable bond 

prescribed in subpart D. 

(c) Wine withdrawn without payment 

of tax under this subpart may not be 

substituted for imported merchandise 

for purposes of drawback of tax under 

section 313(j)(2) of the Tariff Act of 

1930, as amended (19 U.S.C. 1313(j)(2)). 

See 19 CFR 191.32(b)(4). 

4. Section 28.141 is amended by 

adding a new paragraph (d) to read as 

follows: 

§ 28.141 General. 

* * * * * 

(d) Customs drawback claims. Beer 

removed without payment of tax under 

this subpart may not be substituted for 

imported merchandise for purposes of 

drawback of tax under section 313(j)(2) 

of the Tariff Act of 1930, as amended 

(19 U.S.C. 1313(j)(2)). See 19 CFR 

191.32(b)(4). 

5. Section 28.171 is revised to read as 

follows: 

§ 28.171 General. 

(a) Distilled spirits manufactured, 

produced, bottled in bottles, packed in 

containers, or packaged in casks or other 

bulk containers in the United States on 

which an internal revenue tax has been 

paid or determined, and which have 

been marked under the provisions of 27 

CFR part 19 and of this part, as 

applicable, especially for export with 

benefit of drawback may be: 

(1) Exported; 

(2) Laden for use on the vessels or 

aircraft described in § 28.21; 

(3) Transferred to and deposited in a 

foreign-trade zone for exportation or for 

storage pending exportation; or 

(4) Transferred to and deposited in a 

customs bonded warehouse as provided 

for in § 28.26(b). 

(b) On receipt by the appropriate TTB 

officer of required evidence of 

exportation, lading for use, or transfer, 

there shall be allowed to the bottler (or 

packager) of the spirits, drawback equal 

in amount to the tax found to have been 

paid or determined on the spirits. 

(c) Distilled spirits on which 

drawback is paid under this subpart 

may not be substituted for imported 

merchandise for purposes of drawback 

of tax under section 313(j)(2) of the 

Tariff Act of 1930, as amended (19 

U.S.C. 1313(j)(2)). See 19 CFR 

191.32(b)(4). 

6. Section 28.211 is revised to read as 

follows: 

§ 28.211 General. 

(a) Wines manufactured, produced, 

bottled in bottles packed in containers, 

or packaged in casks or other bulk 

containers in the United States on 

which an internal revenue tax has been 

paid or determined, and which are filled 

on premises qualified under this chapter 

to package or bottle wines, may, subject 

to this part, be: 

(1) Exported; 

(2) Laden for use on the vessels or 

aircraft described in § 28.21; or 

(3) Transferred to and deposited in a 

foreign-trade zone for exportation or for 

storage pending exportation. 

(b) On receipt by the appropriate TTB 

officer of required evidence of 

exportation, lading for use, or transfer, 

there shall be allowed a drawback equal 

in amount to the tax found to have been 

paid or determined on the wines. 

(c) Wines on which drawback is paid 

under this subpart may not be 

substituted for imported merchandise 

for purposes of drawback of tax under 

section 313(j)(2) of the Tariff Act of 

1930, as amended (19 U.S.C. 1313(j)(2)). 

See 19 CFR 191.32(b)(4). 

7. Section 28.221 is revised to read as 

follows: 

§ 28.221 General. 

(a) Beer brewed or produced in the 

United States and on which the internal 

revenue tax has been paid may, subject 

to this part, be: 

(1) Exported; 

(2) Delivered for use as supplies on 

the vessels and aircraft described in 

§ 28.21; or 

(3) Transferred to and deposited in a 

foreign-trade zone for exportation or for 

storage pending exportation. 

(b) A claim for drawback of taxes 

found to have been paid may be filed 

only by the producing brewer or his 

duly authorized agent. On receipt by the 

appropriate TTB officer of required 

evidence of such exportation, delivery 

for use, or transfer, there shall be 

allowed a drawback equal in amount to 

the tax found to have been paid on such 

beer. 

(c) Beer on which drawback is paid 

under this subpart may not be 

substituted for imported merchandise 

for purposes of drawback of tax under 

section 313(j)(2) of the Tariff Act of 

1930, as amended (19 U.S.C. 1313(j)(2)). 

See 19 CFR 191.32(b)(4). 

PART 44—EXPORTATION OF 

TOBACCO PRODUCTS AND 

CIGARETTE PAPERS AND TUBES, 

WITHOUT PAYMENT OF TAX, OR WITH 

DRAWBACK OF TAX 

8. The authority citation for part 44 

continues to read as follows: 

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

5701, 5703–5705, 5711–5713, 5721–5723, 

5731, 5741, 5751, 5754, 6061, 6065, 6151, 


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6402, 6404, 6806, 7011, 7212, 7342, 7606, 

7805; 31 U.S.C. 9301, 9303, 9304, 9306. 

9. Section 44.61 is amended by 

adding a new paragraph (c) to read as 

follows: 

§ 44.61 Removals, withdrawals, and 

shipments authorized. 

* * * * * 

(c) Tobacco products and cigarette 

papers and tubes removed from a 

factory or an export warehouse, and 

cigars withdrawn from a customs 

bonded warehouse, without payment of 

tax under this subpart may not be 

substituted for imported merchandise 

for purposes of drawback of tax under 

section 313(j)(2) of the Tariff Act of 

1930, as amended (19 U.S.C. 1313(j)(2)). 

See 19 CFR 191.32(b)(4). 

10. Section 44.221 is amended by 

designating the existing text as 

paragraph (a) and adding a new 

paragraph (b) to read as follows: 

§ 44.221 Application of drawback of tax. 

* * * * * 

(b) Tobacco products and cigarette 

papers and tubes on which drawback is 

allowed under this subpart may not be 

substituted for imported merchandise 

for purposes of drawback of tax under 

section 313(j)(2) of the Tariff Act of 

1930, as amended (19 U.S.C. 1313(j)(2)). 

See 19 CFR 191.32(b)(4). 

* * * * * 

Signed: September 3, 2009. 

John J. Manfreda, 

Administrator. 

Approved: September 17, 2009. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. E9–24791 Filed 10–14–09; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 151 

46 CFR Part 162 

[USCG–2001–10486] 

RIN 1625–AA32 

Standards for Living Organisms in 

Ships’ Ballast Water Discharged in 

U.S. Waters 

AGENCY: Coast Guard, DHS. 

ACTION: Notice; extension of comment 

periods. 

SUMMARY: The Coast Guard is extending 

the periods for public comment on the 

notice of proposed rulemaking (NPRM) 

and the Draft Programmatic 

Environmental Impact Statement 

(DPEIS) for the rulemaking entitled 

‘‘Standards for Living Organisms in 

Ships’ Ballast Water’’ (Docket No. 

USCG–2001–10486). 

DATES: Comments and related material 

for the NPRM and the DPEIS must either 

be submitted to our online docket via 

http://www.regulations.gov on or before 

the new date for the close of the 

comment period, December 4, 2009, or 

reach the Docket Management Facility 

by that date. 

ADDRESSES: You may submit comments 

identified by Coast Guard docket 

number USCG–2001–10486 to the 

Docket Management Facility at the U.S. 

Department of Transportation. To avoid 

duplication, please use only one of the 

following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Mail: Docket Management Facility 

(M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590– 

0001. 

(3) Hand delivery: Docket 

Management Facility (M–30), U.S. 

Department of Transportation, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The telephone 

number is 202–366–9329. 

(4) Fax: 202–493–2251. 

To avoid duplication, please use only 

one of these four methods. See the 

‘‘Public Participation and Request for 

Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section 

below for instructions on submitting 

comments. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this proposed 

rulemaking, call or e-mail Mr. John 

Morris, Project Manager, Environmental 

Standards Division, U.S. Coast Guard 

Headquarters, telephone 202–372–1433, 

e-mail John.C.Morris@uscg.mil. If you 

have questions on viewing or submitting 

material to the docket, call Ms. Renee 

Wright, Chief, Dockets, Department of 

Transportation, telephone 202–366– 

9826. 

SUPPLEMENTARY INFORMATION: 

Public Participation and Request for 

Comments 

We encourage you to participate in 

this aspect of the rulemaking by 

submitting comments and related 

materials. All comments received will 

be posted, without change, to http:// 

www.regulations.gov and will include 

any personal information you have 

provided. 

Submitting Comments 

If you submit a comment, please 

include the docket number for this 

rulemaking (USCG–2001–10486), 

indicate the specific section of the 

document to which each comment 

applies, and provide a reason for each 

suggestion or recommendation. You 

may comment on either the NPRM or 

the DPEIS or both. You may submit your 

comments and material online or by fax, 

mail, or hand delivery, but please use 

only one of these means. We 

recommend that you include your name 

and a mailing address, an e-mail 

address, or a phone number in the body 

of your document so that we can contact 

you if we have questions regarding your 

submission. 

To submit your comment online, go to 

http://www.regulations.gov and click on 

the ‘‘submit a comment’’ box, which 

will then become highlighted in blue. 

Insert ‘‘USCG–2001–10486’’ in the 

Keyword box, click ‘‘Search’’, and then 

click on the balloon shape in the 

Actions column. If you submit your 

comments by mail or hand delivery, 

submit them in an unbound format, no 

larger than 81⁄2 by 11 inches, suitable for 

copying and electronic filing. If you 

submit comments by mail and would 

like to know that they reached the 

Facility, please enclose a stamped, selfaddressed postcard or envelope. 

We will consider all comments and 

material received during the comment 

period and may change this proposed 

rule or the DPEIS based on your 

comments. 

Viewing Comments and Documents 

To view comments, as well as 

documents mentioned in this preamble 

as being available in the docket, go to 

http://www.regulations.gov at any time. 

Enter the docket number for this 

rulemaking (USCG–2001–10486) in the 

Keyword box, and click ‘‘Search’’. You 

may also visit the Docket Management 

Facility in Room W12–140 on the 

ground floor of the DOT West Building, 

1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. We have an 

agreement with the Department of 

Transportation to use the Docket 

Management Facility. 

Privacy Act 

Anyone can search the electronic 

form of all comments received into any 

of our dockets by the name of the 

individual submitting the comment (or 


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