[Federal Register Volume 66, Number 13 (Friday, January 19, 2001)]
[Rules and Regulations]
[Pages 5469-5472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1162]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Parts 17 and 18

[T.D. ATF-436]
RIN 1512-AB99


Delegation of Authority for Parts 17 and 18

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury.

ACTION: Treasury decision, final rule.

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SUMMARY: Authority delegation. This final rule places most ATF 
authorities contained in parts 17 and 18, title 27 Code of Federal 
Regulations (CFR), with the ``appropriate ATF officer'' and requires 
that persons file documents required by parts 17 and 18, title 27 Code 
of Federal Regulations (CFR), with the ``appropriate ATF officer'' or 
in accordance with the instructions on the ATF form. Also, this final 
rule removes the definitions of, and references to, specific officers 
subordinate to the Director. Concurrently with this Treasury Decision, 
ATF Order 1130.13 is being published. Through this order, the Director 
has delegated most of the authorities in 27 CFR parts 17 and 18 to the 
appropriate ATF officers and specified the ATF officers with whom 
applications, notices and other reports, which are not ATF forms, are 
filed.

EFFECTIVE DATE: January 19, 2001.

FOR FURTHER INFORMATION CONTACT: Robert Ruhf, Regulations Division, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue NW, 
Washington, DC 20226 (202-927-8210).

SUPPLEMENTARY INFORMATION:

Background

    Pursuant to Treasury Decision 120-01 (formerly 221), dated June 6, 
1972, the Secretary of the Treasury delegated to the Director of the 
Bureau of Alcohol, Tobacco and Firearms (ATF), the authority to 
enforce, among other laws, the provisions of chapter 51 of the Internal 
Revenue Code of 1986 (IRC). The Director has subsequently redelegated 
certain of these authorities to appropriate subordinate officers by way 
of various means, including by regulation, ATF delegation orders, 
regional directives, or similar delegation documents. As a result, to 
ascertain what particular officer is authorized to perform a particular 
function under chapter 51, each of these various delegation instruments 
must be consulted. Similarly, each time a delegation of authority is 
revoked or redelegated, each of the delegation documents must be 
reviewed and amended as necessary.
    ATF has determined that this multiplicity of delegation instruments 
complicates and hinders the task of determining which ATF officer is 
authorized to perform a particular function. ATF also believes these 
multiple delegation instruments exacerbate the administrative burden 
associated with maintaining up-to-date delegations, resulting in an 
undue delay in reflecting current authorities.
    Accordingly, in this final rule, the Director of ATF is rescinding 
all authorities of the Director in parts 17 and 18 which were 
previously delegated to a specified ATF officer and placing all 
authorities of the Director with the ``appropriate ATF officer.'' Along 
with this final rule, ATF is publishing ATF Order 1130.13, Delegation 
Order--Delegation of the Director's Authorities in parts 17 and 18, in 
which certain of these authorities are then delegated down to the 
appropriate organizational level. The effect of these changes is to 
consolidate all delegations of authority in parts 17 and 18 into one 
delegation instrument. This action both simplifies the process for 
determining what ATF officer is authorized to perform a particular 
function and facilitates the updating of delegations in the event of a 
change in delegation or in the event of a restructuring. As a result, 
delegations of authority will be reflected in a more timely and user-
friendly manner.
    In addition to the above, this final rule also eliminates all 
references in the regulations which identify the ATF officer with whom 
an ATF form is filed. Thus, in lieu of identifying the authorized 
officer in the regulations, the form itself will indicate the officer 
with whom it shall be filed. Similarly, this final rule also amends 
parts 17 and 18 to provide that documents other than ATF forms (such as 
letterhead applications, notices and reports) will be filed with the 
``appropriate ATF officer.'' The ``appropriate ATF officer'' is the 
Director's delegate and will be identified in the accompanying ATF 
Order (ATF Order 1130.13, Delegation Order--Delegation of the 
Director's

[[Page 5470]]

Authorities in part 17 and 18). These changes will facilitate the 
identification of the officer with whom forms and other required 
submissions are filed in the event that authority to receive such 
submissions, or the title of the officer, changes.
    Consistent with the above, this final rule makes various technical 
amendments to subpart C--Administrative and Miscellaneous Provisions of 
27 CFR parts 17 and 18. Specifically, new Secs. 17.7 and 18.12 will be 
added to recognize the authority of the Director to delegate regulatory 
authorities in parts 17 and 18, respectively, and to identify ATF Order 
1130.13 as the instrument reflecting such delegations. Also, Secs. 17.2 
and 18.16 are amended to provide that the instructions on an ATF form 
identify the ATF officer with whom it is filed.
    ATF has made or will make similar changes in delegations to all 
other parts of Title 27 of the Code of Federal Regulations through 
separate rulemakings. By amending the regulations part by part, rather 
than in one large rulemaking document and ATF Order, ATF minimizes the 
time expended in notifying interested parties of current delegations of 
authority.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this final rule because there are no new or 
revised recordkeeping or reporting requirements.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for this rule, 
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
do not apply. A copy of this final rule was submitted to the Chief 
Counsel for Advocacy of the Small Business Administration in accordance 
with 26 U.S.C. 7805(f). No comments were received.

Executive Order 12866

    It has been determined that this rule is not a significant 
regulatory action because it will not: (1) Have an annual effect on the 
economy of $100 million or more or adversely affect in a material way 
the economy, a sector of the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
Executive Order 12866.

Administrative Procedure Act

    Because this final rule merely makes technical amendments and 
conforming changes to improve the clarity of the regulations, it is 
unnecessary to issue this final rule with notice and public procedure 
under 5 U.S.C. 553(b). Similarly it is unnecessary to subject this 
final rule to the effective date limitation of 5 U.S.C. 553(d).

Drafting Information

    The principal author of this document is Robert Ruhf, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects

27 CFR Part 17

    Alcohol and alcoholic beverages, Authority delegations, Claims, 
Drugs, Excise taxes, Foods, Reporting and recordkeeping requirements, 
Spices and flavorings, Surety bonds.

27 CFR Part 18

    Administrative practice and procedure, Authority delegations, 
Excise taxes, Exports, Labeling, Reporting and recordkeeping 
requirements, Security measures, Spices and flavorings, Surety bonds.

Authority and Issuance

    Title 27, Code of Federal Regulations is amended as follows:

PART 17--DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN 
MANUFACTURING NONBEVERAGE PRODUCTS

    Paragraph 1. The authority citation for part 17 continues to read 
as follows:

    Authority: 26 U.S.C. 5010, 5131-5134, 5143, 5146, 5206, 5273, 
6011, 6065, 6091, 6109, 6151, 6402, 6511, 7011, 7213, 7652, 7805, 
5062, 5081, 5111-5113, 5121, 5122, 5142, 5143, 5173, 5206; 31 U.S.C. 
9301, 9303, 9304, 9306.


Secs. 17.2, 17.3, 17.122 and 17.134  [Amended]

    Par. 2. In part 17 remove the word ``Director'' each place it 
appears and add, in substitution, the words ``appropriate ATF officer'' 
in the following places:
    (a) Section 17.2(a);
    (b) Section 17.3(a), introductory text, and (c);
    (c) Section 17.122; and
    (d) Section 17.134.

    Par. 3. In addition to the amendment made above, Sec. 17.2 is 
amended by adding a sentence at the end of paragraph (a) and revising 
paragraph (b) to read as follows:


Sec. 17.2  Forms prescribed.

    (a) * * * The form will be filed in accordance with the 
instructions for the form.
    (b) Forms may be requested from the ATF Distribution Center, P.O. 
Box 5950, Springfield, Virginia 22150-5190, or at the ATF web site 
(http://www.atf.treas.gov/).

    Par. 4. The first sentence of paragraph (b) of Sec. 17.3 is revised 
to read as follows:


Sec. 17.3  Alternate methods or procedures.

* * * * *
    (b) Application. A letter of application to employ an alternate 
method or procedure must be submitted to the appropriate ATF officer. * 
* *
* * * * *


Secs. 17.6, 17.55, 17.121, 17.161, 17.171, 17.182 and 17.183  [Amended]

    Par. 5. Part 17 is further amended by adding the word 
``appropriate'' before the words ``ATF officer'' each place it appears 
in the following places:
    (a) Section 17.6;
    (b) Section 17.55;
    (c) Section 17.121(d);
    (d) Section 17.161;
    (e) Section 17.171;
    (f) Section 17.182; and
    (g) Section 17.183(a).

    Par. 6. A new Sec. 17.7 is added in Subpart A--General Provisions 
to read as follows:


Sec. 17.7  Delegations of the Director.

    The regulatory authorities of the Director contained in this part 
17 are delegated to appropriate ATF officers. These ATF officers are 
specified in ATF Order 1130.13, Delegation Order--Delegation of the 
Director's Authorities in 27 CFR parts 17 and 18. ATF delegation 
orders, such as ATF Order 1130.13, are available to any interested 
person by mailing a request to the ATF Distribution Center, P.O. Box 
5950, Springfield, VA 22150-5190, or by accessing the ATF web site 
(http://www.atf.treas.gov/).

    Par. 7. Section 17.11 is amended by removing the definitions of 
``Alcohol and Tobacco Laboratory'', ``ATF Officer'', and ``Regional 
director (compliance)'', and by adding a new definition of 
``Appropriate ATF officer'' and revising the definition of ``Director'' 
to read as follows:

[[Page 5471]]

Sec. 17.11  Meaning of Terms.

* * * * *
    Appropriate ATF Officer. An officer or employee of the Bureau of 
Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions 
relating to the administration or enforcement of this part by ATF Order 
1130.13, Delegation Order--Delegation of the Director's Authorities in 
27 CFR Parts 17 and 18.
* * * * *
    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, 
the Department of Treasury, Washington, DC 20226.
* * * * *


Secs. 17.54, 17.101, 17.107, 17.108, 17.111, 17.112, 17.113, 17.114, 
17.125, 17.141, 17.143, 17.147, 17.166, 17.167, 17.168, 17.170 and 
17.183  [Amended]

    Par. 8. Part 17 is further amended by removing the words ``regional 
director (compliance)'' or ``regional directors (compliance)'' each 
place it appears and adding, in substitution, the words ``appropriate 
ATF officer'' or ``appropriate ATF officers'', respectively, in the 
following places:
    (a) Section 17.54;
    (b) Section 17.101;
    (c) Section 17.107;
    (d) Section 17.108(c);
    (e) Section 17.111 (a) introductory text and (b);
    (f) Section 17.112;
    (g) Section 17.113;
    (h) Section 17.114;
    (i) Section 17.125(a);
    (j) Section 17.141;
    (k) Section 17.143;
    (l) Section 17.147(a);
    (m) Section 17.166(c);
    (n) Section 17.167(b);
    (o) Section 17.168(a);
    (p) Section 17.170; and
    (q) Section 17.183(b) and (c).

    Par. 9. The first three sentences of Sec. 17.92 are revised into 
two sentences to read as follows:


Sec. 17.92   Filing of refund claim.

    Claim for refund of special tax must be filed on ATF Form 2635 
(5620.8), Claim--Alcohol, Tobacco and Firearms Taxes. The claim must 
set forth in detail sufficient reasons and supporting facts of the 
exact basis of the claim.* * *
* * * * *

    Par. 10. The last sentence of Sec. 17.101 is amended to remove the 
words ``Regional directors (compliance)'' and add, in substitution, the 
words ``Appropriate ATF officers''.


Secs. 17.105, 17.144 and 17.145  [Amended]

    Par. 11. Part 17 is further amended by removing the phrase ``with 
the regional director (compliance)'' each place it appears in the 
following places.
    (a) Section 17.105(b);
    (b) Section 17.144; and
    (c) Section 17.145.

    Par. 12. Paragraph (b) of Sec. 17.121 is amended to remove the 
phrase ``with the Alcohol and Tobacco Laboratory''.

    Par. 13. Section 17.122 is amended by removing the phrase ``to the 
Alcohol and Tobacco Laboratory'' and adding, in substitution, the 
phrase ``appropriate ATF officer''.

    Par. 14. The third sentence of paragraph (b) of Sec. 17.125 is 
revised to read as follows:


Sec. 17.125  Adoption of formulas and processes.

* * * * *
    (b) Adoption of manufacturer's own forumulas from a different 
location. * * * A letterhead notice must be filed with the appropriate 
ATF officer and be accompanied by two photocopies of each formula to be 
adopted. * * *
* * * * *


Secs. 17.126 and 17.136  [Amended]

    Par. 15. Part 17 is further amended by removing the phrase ``to the 
Alcohol and Tobacco Laboratory'' each place it appears in the following 
places:
    (a) Section 17.126(a); and
    (b) Section 17.136.

    Par. 16. Section 17.131 is amended by removing the phrase ``by the 
Alcohol and Tobacco Laboratory'' each place it appears.

    Par. 17. The fifth sentence of paragraph (a) of Sec. 17.142 is 
removed, and the first sentence of paragraph (a) of Sec. 17.142 is 
revised to read as follows :


Sec. 17.142  Claims.

    (a) General. The manufacturer must file claim for drawback with the 
appropriate ATF officer who has the authority to approve or disapprove 
claims. * * *
* * * * *

PART 18--PRODUCTION OF VOLATILE FRUIT FLAVOR CONCENTRATE

    Par. 18. The authority citation for part 18 continues to read as 
follows:

    Authority: 26 U.S.C. 5001, 5172, 5178, 5179, 5203, 5511, 5552, 
6065, 7805; 44 U.S.C. 3504(h).

    Par. 19. Section 18.11 is amended by removing the definitions of 
``ATF officer'' and ``Regional director (compliance) and by adding the 
definition of ``Appropriate ATF officer'' and revising the definition 
of ``Registry number'' to read as follows:


Sec. 18.11  Meaning of Terms.

* * * * *
    Appropriate ATF officer. An officer or employee of the Bureau of 
Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions 
relating to the administration or enforcement of this part by ATF Order 
1130.13, Delegation Order--Delegation of the Director's Authorities in 
27 CFR Parts 17 and 18.
* * * * *
    Registry number. The number assigned to a concentrate plant or a 
bonded wine cellar for an approved application as required by Parts 18 
and 24, respectively.
* * * * *

    Par. 20. A new Sec. 18.12 is added in subpart C--Administrative and 
Miscellaneous Provisions to read as follows:


Sec. 18.12  Delegations of the Director.

    The regulatory authorities of the Director contained in this part 
18 are delegated to appropriate ATF officers. These ATF officers are 
specified in ATF Order 1130.13, Delegation Order--Delegation of the 
Director's Authorities in 27 CFR Parts 17 and 18. ATF delegation 
orders, such as ATF Order 1130.13, are available to any interested 
person by mailing a request to the ATF Distribution Center, PO Box 
5950, Springfield, VA 22150-5190, or by accessing the ATF web site 
(http://www.atf.treas.gov/).


Secs. 18.13, 18.16 and 18.52  [Amended]

    Par. 21. Part 18 is further amended by removing the word 
``Director'' each place it appears and adding, in substitution, the 
words ``appropriate ATF officer'' in the following places:
    (a) Section 18.13(a), introductory text;
    (b) Section 18.16(a); and
    (c) Section 18.52(b).

    Par. 22. Paragraph (b) of Sec. 18.13 is revised to read as follows:


Sec. 18.13  Alternate Methods or Procedures.

* * * * *
    (b) Application. A proprietor who desires to employ an alternate 
method or procedure shall submit a written application to the 
appropriate ATF officer. The application will specifically describe the 
proposed alternate method or procedure and set forth the reasons 
therefor. Alternate methods or procedures may not be employed until the 
application has been approved by the appropriate ATF officer. 
Authorization for any alternate method or procedure may be withdrawn 
whenever in the judgment of the appropriate ATF officer the revenue is 
jeopardized or the effective

[[Page 5472]]

administration of this part is hindered by the continuation of the 
authorization.
* * * * *


Secs. 18.14, 18.22, 18.24 and 18.27  [Amended]

    Par. 23. Part 18 is further amended by removing the words 
``regional director (compliance)'' each place it appears and adding, in 
substitution, the words ``appropriate ATF officer'' in the following 
places:
    (a) Section 18.14(a), introductory text and (b);
    (b) Section 18.22(b);
    (c) Section 18.24; and
    (d) Section 18.27(a).


Secs. 18.15, 18.17, 18.19 and 18.61  [Amended]

    Par. 24. Part 18 is further amended by adding the word 
``appropriate'' before the phrase ``ATF officers'' or ``ATF officer'' 
each place it appears in the following places:
    (a) Section 18.15;
    (b) Section 18.17;
    (c) Section 18.19; and
    (d) Section 18.61(a) and (b).

    Par. 25. Section 18.16 is further amended by adding a sentence at 
the end of paragraph (a) and revising paragraph (b) to read as follows:


Sec. 18.16  Forms prescribed.

    (a) * * * The form will be filed in accordance with the 
instructions for the form.
    (b) Forms may be requested from the ATF Distribution Center, P.O. 
Box 5950, Springfield, Virginia 22150-5190, or at the ATF web site 
(http://www.atf.treas.gov/).

    Par. 26. Section 18.21 is amended by removing the words ``to the 
regional director (compliance)''.

    Par. 27. Section 18.26 is amended by removing the words ``with the 
regional director (compliance)''.

    Par. 28. Section 18.65 is revised to read as follows:


Sec. 18.65  Annual report.

    An annual report, on Form 1695(5520.2), of concentrate plant 
operations shall be prepared by each proprietor and forwarded in 
accordance with the instructions for the form. When a proprietor 
permanently discontinues the business of manufacturing concentrate, the 
proprietor shall submit the annual report in accordance with the 
instructions for the form.

    Signed: July 13, 2000.
Bradley A. Buckles,
Director.
    Approved: August 1, 2000.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 01-1162 Filed 1-18-01; 8:45 am]
BILLING CODE 4810-31-P