[Federal Register Volume 66, Number 13 (Friday, January 19, 2001)]
[Rules and Regulations]
[Pages 5477-5480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1164]



[[Page 5477]]

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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 25

[T.D. ATF-437]
RIN 1512-AC20


Delegation of Authority for Part 25

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

ACTION: Treasury decision, final rule.

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SUMMARY: This final rule places ATF authorities contained in part 25, 
title 27 Code of Federal Regulations (CFR), with the ``appropriate ATF 
officer'' and requires that persons file documents required by part 25, 
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 and the word ``region.'' 
Concurrently with this Treasury Decision, ATF Order 1130.10 is being 
published. Through this order, the Director has delegated most of the 
authorities in 27 CFR part 25 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: This rule is effective January 19, 2001.

FOR FURTHER INFORMATION CONTACT: Robert Ruhf, Regulations Division, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue NW, 
Room 5003, Washington, DC 20226 (telephone 202-927-8210 or e-mail to 
<a href="/cdn-cgi/l/email-protection#52333e31263d30123326343a237c3326347c26203733217c353d24"><span class="__cf_email__" data-cfemail="4928252a3d262b09283d2f213867283d2f673d3b2c283a672e263f">[email protected]</span></a>).

SUPPLEMENTARY INFORMATION:

Background

    Pursuant to Treasury Order 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, this final rule rescinds all authorities of the 
Director in part 25 that were previously delegated and places those 
authorities with the ``appropriate ATF officer.'' All of the 
authorities of the Director that were not previously delegated are also 
placed with the ``appropriate ATF officer.'' Along with this final 
rule, ATF is publishing ATF Order 1130.10, Delegation Order--Delegation 
of the Director's Authorities in 27 CFR part 25, Beer, which delegates 
certain of these authorities to the appropriate organizational level. 
The effect of these changes is to consolidate all delegations of 
authority in part 25 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 future. As a result, delegations of authority will 
be reflected in a more timely and user-friendly manner.
    In addition, this final rule also eliminates all references in the 
regulations that identify the ATF officer with whom an ATF form is 
filed. This is because ATF forms will indicate the officer with whom 
they must be filed. Similarly, this final rule also amends part 25 to 
provide that the submission of documents other than ATF forms (such as 
letterhead applications, notices and reports) must be filed with the 
``appropriate ATF officer'' identified in ATF Order 1130.10. These 
changes will facilitate the identification of the officer with whom 
forms and other required submissions are filed.
    This final rule also makes various technical amendments to Subpart 
A--Scope of Regulations of 27 CFR part 25. First, a new Sec. 25.6 is 
added to recognize the authority of the Director to delegate regulatory 
authorities in part 25 and to identify ATF Order 1130.10 as the 
instrument reflecting such delegations. Second, Sec. 25.3 is amended to 
provide that the instructions for an ATF form identify the ATF officer 
with whom it must be filed. Third, this rule removes from part 25 of 
Title 27 of the Code of Federal Regulations the definition of the term 
``delegate.'' This term is used only in the definition of Secretary in 
part 25 of Title 27 of the Code of Federal Regulations. We have removed 
the definition of ``delegate'' to be consistent with most parts of 
title 27 of the Code of Federal Regulations and to minimize potential 
confusion and misunderstanding with the appropriate ATF officers to 
whom the Director has delegated authority.
    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, Pub. L. 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.

[[Page 5478]]

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 in 27 CFR Part 25

    Administrative practice and procedure, Authority delegations, Beer, 
Claims, Custom duties and inspection, Electronic fund transfers, Excise 
taxes, Exports, Labeling, Liquors, Packaging and containers, Reporting 
and recordkeeping requirements, Research, Security measures, Surety 
bonds, Transportation.

Authority and Issuance

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

PART 25--BEER

    Paragraph 1. The authority citation for part 25 continues to read 
as follows:


    Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 5051-5054, 5056, 5061, 
5091, 5111, 5113, 5142, 5143, 5146, 5222, 5401-5403, 5411-5417, 
5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065, 6091, 
6109, 6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676, 6806, 
7011, 7342, 7606, 7805; 31 U.S.C. 9301, 9303-8.


Secs. 25.3, 25.23, 25.52, 25.142 and 25.155  [Amended]

    Par. 2. In part 25 remove the words ``Director'' each place it 
appears and add, in substitution, the words ``appropriate ATF officer'' 
in the following places:
    (a) Section 25.3(a);
    (b) Section 25.23(b) introductory text and (c);
    (c) Section 25.52(a)(1), (3), (4) and (5);
    (d) Section 25.142(c); and
    (e) Section 25.155.

    Par. 3. Part 25 is further amended by adding a sentence at the end 
of paragraph (a) and revising paragraph (b) of Sec. 25.3 to read as 
follows:


Sec. 25.3  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 22150-5950, or by accessing the ATF web 
site (http://www.atf.treas.gov/).

    Par. 4. In Subpart A--Scope of Regulations, a new Sec. 25.6 is 
added as follows:


Sec. 25.6  Delegations of the Director.

    Most of the regulatory authorities of the Director contained in 
this part 25 are delegated to appropriate ATF officers. These ATF 
officers are specified in ATF Order 1130.10, Delegation Order--
Delegation of the Director's Authorities in 27 CFR part 25, Beer. ATF 
delegation orders, such as ATF Order 1130.10, are available to any 
interested person by mailing a request to the ATF Distribution Center, 
P.O. Box 5950, Springfield, Virginia 22150-5950, or by accessing the 
ATF web site (http://www.atf.treas.gov/).

    Par. 5. Section 25.11 is amended by removing the definitions of 
``Area supervisor'', ``ATF officer'', ``Delegate'', ``Region'' and 
``Regional director (compliance)'' and by adding a new definition of 
``Appropriate ATF officer'' to read as follows:


Sec. 25.11  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 
1130.10, Delegation Order--Delegation of the Director's Authorities in 
27 CFR part 25, Beer.
* * * * *


Secs. 25.11, 25.22, 25.24, 25.25, 25.42, 25.52, 25.61, 25.63, 25.66, 
25.71, 25.72, 25.74, 25.75, 25.77, 25.81, 25.91, 25.95, 25.96, 25.101, 
25.103, 25.104, 25.105, 25.114, 25.144, 25.152, 25.158, 25.165, 25.167, 
25.173, 25.182, 25.184, 25.196, 25.223, 25.225, 25.272, 25.274, 25.277, 
25.281, 25.282, 25.283, 25.284, 25.291, 25.297 and 25.300  [Amended]

    Par. 6. Part 25 is further amended by removing the words ``regional 
director (compliance)'' each place they appear and adding, in 
substitution, the words ``appropriate ATF officer'' in the following 
places:
    (a) The definition of Barrel in Sec. 25.11;
    (b) Section 25.22;
    (c) Section 25.24(a)(7);
    (d) Section 25.25(a);
    (e) Section 25.42(c);
    (f) Section 25.52(a)(2) and (b)(1), (2), (3);
    (g) Section 25.61(a) and (c);
    (h) Section 25.63;
    (i) Section 25.66(c)(1);
    (j) Section 25.71(a)(2) and (b)(1);
    (k) Section 25.72(b)(2);
    (l) Section 25.74;
    (m) Section 25.75;
    (n) Section 25.77;
    (o) Section 25.81(e);
    (p) Section 25.91(c) and (d);
    (q) Section 25.95;
    (r) Section 25.96;
    (s) Section 25.101(a) introductory text and (b);
    (t) Section 25.103;
    (u) Section 25.104;
    (v) Section 25.105;
    (w) Section 25.114(a);
    (x) Section 25.144(b);
    (y) Section 25.152(a) undesignated paragraph;
    (z) Section 25.158(c);
    (aa) Section 25.165(b)(3) and (e);
    (bb) Section 25.167(a);
    (cc) Section 25.173(a);
    (dd) Section 25.182;
    (ee) Section 25.184(d);
    (ff) Section 25.196(b);
    (gg) Section 25.223(a);
    (hh) Section 25.225(b)(2);
    (ii) Section 25.272(a) introductory text, (b), (c), (d) and (e);
    (jj) Section 25.274(a);
    (kk) Section 25.277;
    (ll) Section 25.281(c);
    (mm) Section 25.282(b), (c), (d) and (f);
    (nn) Section 25.283(d);
    (oo) Section 25.284(b);
    (pp) Section 25.291(d)(3);
    (qq) Section 25.297(b)(4); and
    (rr) Section 25.300(c).


Secs. 25.31, 25.42, 25.64, 25.66, 25.68, 25.127, 25.213, 25.251, 
25.252, 25.291, 25.294 and 25.300  [Amended]

    Par. 7. Part 25 is further amended by adding the word 
``appropriate'' before the words ``ATF officer'' or ``ATF officers'' 
each place they appear in the following places:
    (a) Section 25.31;
    (b) Section 25.42 introductory text;
    (c) Section 25.64;
    (d) Section 25.66(d);
    (e) Section 25.68(b);
    (f) Section 25.127;
    (g) Section 25.213(c);
    (h) Section 25.251(c);
    (i) Section 25.252(c);
    (j) Section 25.291(c)(2)(ii);
    (k) Section 25.294(c); and
    (l) Section 25.300(a) and (d)(3).

    Par. 8. Section 25.51 is revised to read as follows:


Sec. 25.51  Right of Entry and Examination.

    An appropriate ATF officer may enter, during normal business hours, 
a brewery or other place where beer is stored and may, when the 
premises are open at other times, enter those premises in the 
performance of official duties. Appropriate ATF officers may

[[Page 5479]]

make inspections as the appropriate ATF officer deems necessary to 
determine that operations are conducted in compliance with the law and 
this part. The owner of any building or place where beer is produced, 
made, or kept, or person having charge over such premises, who refuses 
to admit an appropriate ATF officer acting under 26 U.S.C. 7606, or who 
refuses to permit an appropriate ATF officer to examine beer must, for 
each refusal, forfeit $500.

    Par. 9. Section 25.52(d) is revised to read as follows:


Sec. 25.52  Variations from requirements.

* * * * *
    (d) Withdrawal of approval. The appropriate ATF officer may 
withdraw approval of an alternate method or procedure, approved under 
paragraph (a) or (b) of this section, if the appropriate ATF officer 
finds that the revenue is jeopardized or the effective administration 
of this part is hindered by the approval.
* * * * *

    Par. 10. The first and second sentences of Sec. 25.61(b) are 
revised to read as follows:


Sec. 25.61  General requirements for notice.

* * * * *
    (b) Brewer's Notice, Form 5130.10. Each person must, before 
commencing business as a brewer, give notice on Form 5130.10. Each 
person continuing business as a brewer as provided in Sec. 25.71 must 
give notice on Form 5130.10. * * *
* * * * *


Sec. 25.62  [Amended]

    Par. 11. Section 25.62(b) is amended by removing the words ``the 
regional director of any ATF region'' and adding, in substitution, the 
words ``an ATF office'.


Secs. 25.65, 25.78, 25.81, 25.276 and 25.286  [Amended]

    Par. 12. Part 25 is further amended by removing the phrase ``with 
the regional director (compliance)'' each place it appears in the 
following places:
    (a) Section 25.65;
    (b) Section 25.78;
    (c) Section 25.81(b) introductory text;
    (d) Section 25.276(b); and (e) The last sentence of Sec. 25.286(a).

    Par. 13. Section 25.71 (a)(1) is amended by removing the words ``to 
the regional director (compliance)'' from the first sentence.


Sec. 25.81  [Amended]

    Par. 14. Section 25.81 (c) is amended by removing from the 
introductory text the words ``regional director (compliance) through 
the ATF area supervisor'' and adding, in substitution, the words 
``appropriate ATF officer''.

    Par. 15. The first through third sentences of Sec. 25.85 are 
revised to read as follows:


Sec. 25.85  Notice of permanent discontinuance.

    When a brewer desires to discontinue business permanently, he or 
she must file a notice on Form 5130.10. The brewer must state the 
purpose of the notice as ``Discontinuance of business'' and give the 
date of the discontinuance. When all beer has been lawfully disposed 
of, appropriate ATF officer will approve the Form 5130.10 and return a 
copy to the brewer. * * *
* * * * *


Sec. 25.91  [Amended]

    Par. 16. Section 25.91(a) is amended by removing from the second 
sentence the phrase ``with the regional director (compliance)'' and the 
comma preceding this phrase.

    Par. 17. Section 25.101(b) is revised to read as follows:


Sec. 25.101  Disapproval of bonds or consents of surety.

* * * * *
    (b) Appeal of disapproval. If the bond or consent of surety is 
disapproved, the person giving the bond or consent of surety may appeal 
the disapproval to the appropriate ATF officer, who will grant a 
hearing in the matter if requested by the applicant or brewer, and 
whose decision will be final.
* * * * *

    Par. 18. The second and last sentences of Sec. 25.141(b)(2) are 
revised to read as follows:


Sec. 25.141  Barrels and kegs.

* * * * *
    (b) * * *
    (2) * * * The coding system employed will permit an appropriate ATF 
officer to determine the place of production (including street address 
if two or more breweries are located in the same city) of the beer. The 
brewer must notify the appropriate ATF officer prior to employing a 
coding system.
* * * * *

    Par. 19. The second and last sentences of Sec. 25.142(b)(2) are 
revised to read as follows:


Sec. 25.142  Bottles.

* * * * *
    (b) * * *
    (2) * * * The coding system employed will permit an appropriate ATF 
officer to determine the place of production (including street address 
if two or more breweries are located in the same city) of the beer. The 
brewer must notify the appropriate ATF offcer prior to employing a 
coding system.
* * * * *


Sec. 25.165  [Amended]

    Par. 20. Section 25.165(b)(1) is amended by removing the words 
``regional director (compliance), for each region in which taxes are 
paid'' and adding, in substitution, the words ``appropriate ATF 
officer''.


Sec. 25.184  [Amended]

    Par. 21. Section 25.184(c) is amended by removing the second 
sentence.

    Par. 22. Section 25.213(b) is amended by revising the first and 
third sentences of the introductory text to read as follows:


Sec. 25.213  Beer returned to brewery other than that from which 
removed.

* * * * *
    (b) Notice. A brewer need not file notice of intention to return 
beer to a brewery other than the one from which removed unless required 
by the appropriate ATF officer. * * * The brewer must file it with the 
appropriate ATF officer. * * *
* * * * *

    Par. 23. Section 25.222 (a) is amended by revising the last 
sentence to read as follows:


Sec. 25.222  Notice of brewer.

    (a) * * * The brewer must submit this notice to the appropriate ATF 
officer.
* * * * *


Secs. 25.222 and 25.225  [Amended]

    Par. 24. Part 25 is further amended by removing the words ``area 
supervisor'' each place they appear, and adding, in substitution, the 
words ``appropriate ATF officer'' in the following places:
    (a) Section 25.222(b); and
    (b) Section 25.225(b)(2).

    Par. 25. Section 25.223(b) is revised to read as follows:


Sec. 25.223  Destruction of beer off brewery premises.

* * * * *
    (b) Destruction with supervision. The appropriate ATF officer may 
require that an approriate ATF officer verify the information in the 
notice of destruction or witness the destruction of the beer. The 
appropriate ATF officer may also require a delay in the destruction of 
the beer or, if the place of destruction is not readily accessible to 
an appropriate ATF

[[Page 5480]]

officer, may require that the beer be moved to a more convenient 
location. In this case, the brewer may not destroy the beer except 
under the conditions imposed by the appropriate ATF officer.

    Par. 26. Section 25.273 is revised to read as follows:


Sec. 25.273  Action on application.

    If the appropriate ATF officer approves the application for a pilot 
brewing plant, he or she will note approval on the application and 
forward a copy to the applicant. The applicant must file the copy of 
the approved application at the premises, available for inspection by 
an appropriate ATF officer.

    Par. 27. Section 25.276 (c) amended by revising the first and last 
sentences to read as follows:


Sec. 25.276  Operations and records.

* * * * *
    (c) Records. The operator of a pilot brewing plant must maintain 
records which, in the opinion of the appropriate ATF officer, are 
appropriate to the type of operation being conducted. * * * These 
records will be available for inspection by an appropriate ATF officer.
* * * * *

    Par. 28. Section 25.282(e) is revised to read as follows:


Sec. 25.282  Beer lost by fire, theft, casualty, or act of God.

* * * * *
    (e) Notification of appropriate ATF officer. (1) A brewer who 
sustains a loss of beer before transfer of title of the beer to another 
person and who desires to adjust the tax on the excise tax return or to 
file a claim for refund or for relief from liability of tax, must, on 
learning of the loss of beer, immediately notify in writing the 
appropriate ATF officer of the nature, cause, and extent of the loss, 
and the place where the loss occurred. Statements of witnesses or other 
supporting documents must be furnished if available.
    (2) A brewer possessing unmerchantable beer and who desires to 
adjust the tax on the excise tax return or to file a claim for refund 
or for relief from liability must notify in writing the appropriate ATF 
officer, of the circumstances by which the beer became unmerchantable, 
and must state why the beer cannot be salvaged and returned to the 
market for consumption or sale.


Sec. 25.283  [Amended]

    Par. 29. Section 25. 283(e) is amended by removing the words ``with 
the regional director (compliance) of the region in which the beer was 
lost, returned, destroyed, or rendered unmerchantable''.

    Par. 30. Section 25.284(d) is amended by revising the third and 
last sentences to read as follows:


Sec. 25.284  Adjustment of tax.

* * * * *
    (d) Beer lost, destroyed or rendered unmerchantable. * * * A brewer 
may not make an adjustment prior to notification required under 
Sec. 25.282(e). When beer appears to have been lost due to theft, the 
brewer may not make an adjustment to the tax return until establishing 
to the satisfaction of the regional director (compliance) that the 
theft occurred before removal from the brewery and occurred without 
connivance, collusion, fraud, or negligence on the part of the brewer, 
consignor, consignee, bailee, or carrier, or the employees or agents of 
any of them.
* * * * *


Sec. 25.285  [Amended]

    Par. 31. Section 25.285(a) is amended by removing from the third 
sentence the words ``with regional director (compliance) in which the 
brewer's principal place of business is located'' and the comma 
following these words.


Sec. 25.297  [Amended]

    Par. 32. Section 25.297(a) is amended by removing the words ``to 
the regional director (compliance) not later than the 15th day of the 
month following the close of the month for which prepared''.

    Par. 33. Section 25.297(b) is amended by removing from the first 
sentence the words ``with the regional director (compliance) not later 
than the 15th day of the month following the close of the calendar 
quarter for which prepared''.

    Signed: July 19, 2000.
Bradley A. Buckles,
Director.
    Approved: August 1, 2000.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 01-1164 Filed 1-18-01; 8:45 am]
BILLING CODE 4810-31-U


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