| Title: | CIGARETTE COMPLIANCE ACT |
|---|---|
| Date: | 2001-06-14 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : CARLA DONOFRIO
SUBJECT : CIGARETTE COMPLIANCE ACT
DATE : 06/13/2001
JUNE 8, 2001
PUBLIC VERSION
FO:TP:TEC:OGA CD
TO :ALL PORT DIRECTORS
ALL ASSISTANT PORT DIRECTORS
DIRECTORS, FIELD OPERATIONS
FROM :ASSISTANT COMMISSIONER
OFFICE OF FIELD OPERATIONS
SUBJECT:MODIFICATIONS TO RULES GOVERNING IMPORTATION OF TOBACCO
PRODUCTS AND CIGARETTES
BACKGROUND:
ON NOVEMBER 9, 2000, THE PRESIDENT SIGNED THE "TARIFF SUSPENSION AND
TRADE ACT OF 2000" INTO LAW (PUBLIC LAW 106-476). TITLE IV OF THIS
LAW IS KNOWN AS THE "IMPORTED CIGARETTE COMPLIANCE ACT OF 2000." THIS
NEW LAW AMENDED SECTIONS 5754, 5704 & 5761 OF TITLE 26 OF THE INTERNAL
REVENUE CODE (RESTRICTIONS ON IMPORTATION OF PREVIOUSLY EXPORTED
TOBACCO PRODUCTS), AND ADDED A NEW TITLE, TITLE VIII TO THE TARIFF ACT
OF 1930 (19 U.S.C. 1202 ET SEQ.) RELATING TO THE IMPORTATION OF
CIGARETTES INTO THE UNITED STATES. IN ADDITION, ON DECEMBER 21, 2000,
CONGRESS PASSED THE CONSOLIDATED APPROPRIATIONS ACT OF 2001 (PUBLIC
LAW 106-554), WHICH ALSO AMENDED 26 U.S.C. 5761.
I. THE RULES GOVERNING THE IMPORTATION OF CIGARETTES AND TOBACCO
PRODUCTS UNDER 26 U.S.C 5754. RESTRICTIONS ON IMPORTATION OF
PREVIOUSLY EXPORTED TOBACCO PRODUCTS AND OTHER CONFORMING AMENDMENTS:
A.EXPORT-LABELED TOBACCO PRODUCTS:
(1)IN GENERAL, TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES
MANUFACTURED IN THE U.S. AND LABELED FOR EXPORTATION UNDER THIS
SECTION REQUIRE THAT SUCH TOBACCO PRODUCTS:
(A)MAY BE TRANSFERRED TO OR REMOVED FROM THE PREMISES OF A
MANUFACTURER OR AN EXPORT WAREHOUSE PROPRIETOR ONLY IF SUCH ARTICLES
ARE BEING TRANSFERRED OR REMOVED WITHOUT TAX IN ACCORDANCE WITH
SECTION 5704 AS DESCRIBED BELOW.
1(26 U.S.C. 5704. EXEMPTION FROM TAXES (ATF REGULATIONS) STATES THE
FOLLOWING:
(A)TOBACCO PRODUCTS FURNISHED FOR EMPLOYEE USE OR EXPERIMENTAL
PURPOSES.
TOBACCO PRODUCTS MAY BE FURNISHED BY A MANUFACTURER OF SUCH PRODUCTS,
WITHOUT PAYMENT OF TAX, FOR USE OR CONSUMPTION BY EMPLOYEES OR FOR
EXPERIMENTAL PURPOSES, IN SUCH QUANTITIES, AND IN SUCH MANNER AS THE
SECRETARY BY REGULATION SHALL PRESCRIBE. (SEE ATF REGULATIONS - 27
CFR PART 270).
(B)TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES TRANSFERRED OR
REMOVED IN BOND FROM DOMESTIC FACTORIES AND EXPORT WAREHOUSES. A
MANUFACTURER OR EXPORT WAREHOUSE PROPRIETOR MAY TRANSFER TOBACCO
PRODUCTS AND CIGARETTE PAPERS AND TUBES, WITHOUT PAYMENT OF TAX, TO
THE BONDED PREMISES OF ANOTHER MANUFACTURER OR EXPORT WAREHOUSE
PROPRIETOR, OR REMOVE SUCH ARTICLES, WITHOUT PAYMENT OF TAX, FOR
SHIPMENT TO A FOREIGN COUNTRY, PUERTO RICO, THE VIRGIN ISLANDS, OR A
POSSESSION OF THE UNITED STATES, OR FOR CONSUMPTION BEYOND THE
JURISDICTION OF THE INTERNAL REVENUE LAWS OF THE UNITED STATES; AND
MANUFACTURERS MAY SIMILARLY REMOVE SUCH ARTICLES FOR USE OF THE UNITED
STATES; IN ACCORDANCE WITH SUCH REGULATIONS AND UNDER SUCH BONDS AS
THE SECRETARY OF TREASURY SHALL PRESCRIBE. TOBACCO PRODUCTS AND
PAPERS AND TUBES MAY NOT BE TRANSFERRED OR REMOVED UNDER THIS
SUBSECTION UNLESS SUCH PRODUCTS OR PAPERS AND TUBES BEAR SUCH MARKS,
LABELS, OR NOTICES AS THE SECRETARY SHALL PRESCRIBE. (SEE ATF
REGULATIONS AT 27 CFR 290.184, 290.185, AND 290.222 FOR EXPORT (SEE
SECTION 1(B)) AND AT 27 CFR 295.41-64 FOR USE OF THE UNITED STATES).
(C)TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES RELEASED IN BOND
FROM CUSTOMS CUSTODY. TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES,
IMPORTED OR BROUGHT INTO THE UNITED STATES, MAY BE RELEASED FROM
CUSTOMS CUSTODY, WITHOUT PAYMENT OF TAX, FOR DELIVERY TO THE
PROPRIETOR OF AN EXPORT WAREHOUSE, OR TO A MANUFACTURER OF TOBACCO
PRODUCTS OR CIGARETTE PAPERS AND TUBES IF SUCH ARTICLES ARE NOT PUT UP
IN PACKAGES, IN ACCORDANCE WITH SUCH REGULATIONS AND UNDER SUCH BOND
AS THE SECRETARY SHALL PRESCRIBE. (SEE ATF REGULATIONS AT 27 C.F.R.
275.85 AND .86).
(D)TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES EXPORTED AND
RETURNED. TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES CLASSIFIABLE
UNDER ITEM 804.00 OF TITLE I OF THE TARIFF ACT OF 1930 (RELATING TO
DUTY ON CERTAIN ARTICLES PREVIOUSLY EXPORTED AND RETURNED) MAY BE
RELEASED FROM CUSTOMS CUSTODY, WITHOUT PAYMENT OF THAT PART OF THE
DUTY ATTRIBUTABLE TO THE INTERNAL REVENUE TAX FOR DELIVERY TO THE
ORIGINAL MANUFACTURER OF TOBACCO PRODUCTS OR CIGARETTE PAPERS AND
TUBES OR TO THE PROPRIETOR OF AN EXPORT WAREHOUSE, AUTHORIZED BY SUCH
MANUFACTURER TO RECEIVE SUCH ARTICLES, IN ACCORDANCE
1WITH SUCH REGULATIONS AND UNDER SUCH BOND, AS THE SECRETARY SHALL
PRESCRIBE. (SEE ATF REGULATIONS AT 27 CFR 275.82, .85A AND .86).
UPON SUCH RELEASE SUCH PRODUCTS, PAPERS, AND TUBES SHALL BE SUBJECT TO
THIS CHAPTER AS IF THEY HAD NOT BEEN EXPORTED OR OTHERWISE REMOVED
FROM INTERNAL-REVENUE BOND. (NOTE: THE MANUFACTURER AND EXPORT
WAREHOUSE PROPRIETORS ARE REGULATED BY ATF AND ARE REQUIRED TO HAVE A
BOND TO COVER INTERNAL REVENUE TAXES. THE BOND IS ISSUED UNDER THE
INTERNAL REVENUE CODE.))
(B)MAY BE IMPORTED OR BROUGHT INTO THE U.S., AFTER THEIR EXPORTATION,
ONLY IF SUCH ARTICLES EITHER ARE ELIGIBLE TO BE RELEASED FROM CUSTOMS
CUSTODY WITH PARTIAL DUTY EXEMPTION PROVIDED IN SECTION 5704(D) OR ARE
RETURNED TO THE ORIGINAL MANUFACTURER OF SUCH ARTICLE AS PROVIDED IN
SECTION 5704(C); AND
(C)MAY NOT BE SOLD OR HELD FOR SALE FOR DOMESTIC CONSUMPTION IN THE
U.S. UNLESS SUCH ARTICLES ARE REMOVED FROM THEIR EXPORT PACKAGING AND
REPACKAGED BY THE ORIGINAL MANUFACTURER INTO NEW PACKAGING THAT DOES
NOT CONTAIN AN EXPORT LABEL.
(2)ALTERATIONS BY PERSONS OTHER THAN THE ORIGINAL MANUFACTURER - THIS
SECTION APPLIES TO ARTICLES LABELED FOR EXPORT EVEN IF THE PACKAGING
OR THE APPEARANCE OF SUCH PACKAGING TO THE CONSUMER OF THE ARTICLE HAS
BEEN MODIFIED OR ALTERED BY A PERSON OTHER THAN THE ORIGINAL
MANUFACTURER SO AS TO REMOVE, CONCEAL OR ATTEMPT TO REMOVE OR CONCEAL
(INCLUDING THE PLACEMENT OF A STICKER OVER) ANY EXPORT LABEL.
(3)EXPORTS INCLUDE SHIPMENTS TO PUERTO RICO - FOR PURPOSES OF SECTION
5754, 5704(D), 5761 AND OTHER PROVISIONS THAT MAKE REFERENCE TO
EXPORTATION SHALL BE TREATED AS INCLUDING A REFERENCE TOSHIPMENT TO
THE COMMONWEALTH OF PUERTO RICO.
B.EXPORT LABEL - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES MAY
NOT BE TRANSFERRED OR REMOVED UNDER THIS SUBSECTION UNLESS THE
PRODUCTS OR PAPERS AND TUBES BEAR MARKS, LABELS, OR NOTICES AS
DESCRIBED UNDER THE BUREAU OF ALCOHOL, TOBACCO AND FIREARMS (ATF)
REGULATIONS AT 27 C.F.R. 290.184, 290.185 AND 290.222. EVERY PACKAGE
OF TOBACCO PRODUCTS, INTENDED FOR EXPORT, MUST BE MARKED WITH THE
WORDS:
"TAX-EXEMPT. FOR USE OUTSIDE U.S."; OR
"U.S. TAX-EXEMPT. FOR USE OUTSIDE U.S."; OR
A STAMP, STICKER OR NOTICE REQUIRED BY A FOREIGN COUNTRY OR A
POSSESSION OF THE UNITED STATES, WHICH IDENTIFIES SUCH COUNTRY OR
POSSESSION; OR
"FOR EXPORT WITH DRAWBACK OF TAX."
1C.REQUIREMENT TO DESTROY FORFEITED TOBACCO PRODUCTS -
(1)ON OR AFTER FEBRUARY 7, 2001, 26 U.S.C. 5761(C) IMPOSES A CIVIL
PENALTY (WHICH WILL BE ASSESSED BY ATF) AGAINST ANY PERSON THAT SELLS,
RELANDS, OR RECEIVES PREVIOUSLY EXPORTED TOBACCO PRODUCTS, OR
CIGARETTE PAPERS AND TUBES WITHIN THE JURISDICTION OF THE U.S. SUCH
PRODUCTS SHALL BE FORFEITED TO THE U.S. AND DESTROYED. IN ADDITION,
ALL VESSELS, VEHICLES, AND AIRCRAFT USED IN SUCH RELANDING OR IN
REMOVING SUCH PRODUCTS, PAPERS AND TUBES FROM THE PLACE WHERE
RELANDED, SHALL BE FORFEITED TO THE U.S.
(2)THIS SECTION DOES NOT APPLY TO ANY PERSONAL TRAVELER, WHO CLAIMS
AND IS GRANTED AN EXEMPTION FOR TOBACCO PRODUCTS IN THE QUANTITY
ALLOWED ENTRY FREE OF TAX AND DUTY UNDER CHAPTER 98 OF THE HARMONIZED
TARIFF SCHEDULE OF THE U.S. (HTSUS). NO QUANTITY OF TOBACCO PRODUCTS
OTHER THAN THE QUANTITY REFERRED TO IN THE PRECEDING SENTENCE MAY BE
RELANDED OR RECEIVED AS A PERSONAL USE QUANTITY (SEE SECTION I UNDER
"ACTION" BELOW).
II. THE FOLLOWING ARE NEW IMPORT REQUIREMENTS GOVERNING THE
IMPORTATION OF CIGARETTES UNDER THE TARIFF ACT OF 1930 AS REVISED BY
THE IMPORTED CIGARETTE COMPLIANCE ACT OF 2000:
A.AS A GENERAL RULE, EXCEPT AS PROVIDED FOR IN SUBSECTION (B),
CIGARETTES MAY BE IMPORTED INTO THE U.S. ONLY IF:
(1)THE ORIGINAL MANUFACTURER OF THOSE CIGARETTES HAS TIMELY SUBMITTED,
OR HAS CERTIFIED THAT IT WILL TIMELY SUBMIT, TO THE SECRETARY OF
HEALTH AND HUMAN SERVICES THE LISTS OF THE INGREDIENTS ADDED TO
TOBACCO IN THE MANUFACTURE OF SUCH CIGARETTES AS DESCRIBED IN SECTION
7 OF THE FEDERAL CIGARETTE LABELING AND ADVERTISING ACT
(15 U.S.C. 1335A);
(2)THE PRECISE WARNING STATEMENTS IN THE PRECISE FORMAT SPECIFIED IN
SECTION 4 OF THE FEDERAL CIGARETTE LABELING AND ADVERTISING ACT (15
U.S.C. 1333) ARE PERMANENTLY IMPRINTED ON BOTH:
(A)THE PRIMARY PACKAGING OF ALL CIGARETTES;
(B)ANY OTHER PACK, BOX, CARTON OR CONTAINER OF ANY KIND IN WHICH
THOSE CIGARETTES ARE TO BE OFFERED FOR SALE OR OTHERWISE DISTRIBUTED
TO CONSUMERS;
(3)THE MANUFACTURER OR IMPORTER OF THOSE CIGARETTES IS IN COMPLIANCE
WITH RESPECT TO THOSE CIGARETTES BEING IMPORTED INTO THE U.S. WITH A
ROTATION PLAN APPROVED BY THE FEDERAL TRADE COMMISSION PURSUANT TO
SECTION 4(C) OF THE FEDERAL CIGARETTE LABELING AND ADVERTISING ACT (15
U.S.C. 1333(C));
1(4)IF SUCH CIGARETTES BEAR A U.S. TRADEMARK REGISTERED FOR SUCH
CIGARETTES, THE OWNER OF SUCH U.S. TRADEMARK REGISTRATION FOR
CIGARETTES (OR A PERSON AUTHORIZED TO ACT ON BEHALF OF SUCH OWNER) HAS
CONSENTED TO THE IMPORTATION OF SUCH CIGARETTES INTO THE U.S.; AND
(5)THE IMPORTER HAS SUBMITTED, AT THE TIME OF ENTRY, ALL OF THE
CERTIFICATES DESCRIBED IN SECTION II OF THE "ACTION" PORTION OF THIS
DOCUMENT.
B.EXEMPTIONS - CIGARETTES SATISFYING THE CONDITIONS OF ANY OF THE
FOLLOWING PARAGRAPHS WILL NOT BE SUBJECT TO THE REQUIREMENTS OF
SUBSECTION (A):
(1)PERSONAL-USE CIGARETTES - CIGARETTES THAT ARE IMPORTED INTO THE
U.S. IN PERSONAL USE QUANTITIES IN CASES IN WHICH THE TRAVELER HAS
CLAIMED AND HAS BEEN GRANTED AN EXEMPTION FOR ENTRY FREE OF TAX AND
DUTY UNDER CHAPTER 98 OF THE HTSUS (SEE "ACTION", SECTION I);
(2)CIGARETTES IMPORTED INTO THE U.S. FOR ANALYSIS - CIGARETTES THAT
ARE IMPORTED INTO THE U.S. SOLELY FOR THE PURPOSE OF ANALYSIS IN
QUANTITIES SUITABLE FOR SUCH PURPOSE, BUT ONLY IF THE IMPORTER
SUBMITS, AT THE TIME OF ENTRY, A CERTIFICATE SIGNED UNDER PENALTIES OF
PERJURY, BY THE CONSIGNEE (OR PERSON AUTHORIZED BY SUCH CONSIGNEE)
PROVIDING SUCH FACTS TO ESTABLISH THAT THE CONSIGNEE IS A MANUFACTURER
OF CIGARETTES, A FEDERAL OR STATE GOVERNMENT AGENCY, A UNIVERSITY, OR
IS OTHERWISE ENGAGED IN BONA FIDE RESEARCH AND STATING THAT THE
CIGARETTES WILL BE USED SOLELY FOR ANALYSIS AND WILL NOT BE SOLD IN
DOMESTIC COMMERCE IN THE U.S.
(3)CIGARETTES INTENDED FOR NONCOMMERCIAL USE, RE-EXPORT, OR
REPACKAGING:
(A)CIGARETTES FOR WHICH THE OWNER OF SUCH U.S. TRADEMARK REGISTRATION
FOR CIGARETTES (OR A PERSON AUTHORIZED TO ACT ON BEHALF OF SUCH OWNER)
HAS CONSENTED TO THE IMPORTATION OF SUCH CIGARETTES INTO THE U.S.; AND
(B)CIGARETTES FOR WHICH THE IMPORTER SUBMITS A CERTIFICATE, SIGNED BY
THE MANUFACTURER OR EXPORT WAREHOUSE PROPRIETOR (OR A PERSON
AUTHORIZED BY SUCH MANUFACTURER OR EXPORT WAREHOUSE PROPRIETOR) TO
WHICH SUCH CIGARETTES ARE TO BE DELIVERED (AS PROVIDED FOR IN
SUBPARAGRAPH (A)) STATING, UNDER PENALTIES OF PERJURY, WITH RESPECT TO
THOSE CIGARETTES, THAT IT WILL NOT DISTRIBUTE THOSE CIGARETTES INTO
DOMESTIC COMMERCE UNLESS PRIOR TO SUCH DISTRIBUTION ALL STEPS HAVE
BEEN TAKEN TO COMPLY WITH PARAGRAPHS (1), (2), AND (3) OF SUBSECTION
(A) AND TO THE EXTENT APPLICABLE, SECTION 5754(A)(1) (B) AND (C) OF
THE INTERNAL REVENUE CODE OF 1986.
1NOTE: IF A MANUFACTURER OR EXPORT WAREHOUSE HAS A PERMIT FROM ATF AND
WOULD LIKE TO MOVE THE CIGARETTES IN BOND, THEN THE IMPORTER MUST
PROVIDE AN ATF FORM 5200.11, (NOTICE OF RELEASE OF TOBACCO PRODUCTS,
CIGARETTE PAPERS OR CIGARETTE TUBES) THAT IS SIGNED BY AN ATF
OFFICIAL.
C.ANY TOBACCO PRODUCT, CIGARETTE PAPERS OR TUBES THAT WAS IMPORTED
INTO THE U.S. OR, IS SOUGHT TO BE IMPORTED, INTO THE U.S. IN VIOLATION
OF, OR WITHOUT MEETING THE REQUIREMENTS OF THIS SECTION, WILL BE
SEIZED UNDER THE PROVISIONS OF 19 U.S.C. 1595A(C) OR 26 U.S.C. 5761
(NOTE: 26 U.S.C. 5761 PROVIDES FOR FORFEITURE ONLY). NOTWITHSTANDING
ANY OTHER PROVISION OF LAW, ANY PRODUCT FORFEITED TO THE U.S. PURSUANT
TO THIS SECTION WILL BE DESTROYED.
ACTION:
THE FOLLOWING ARE OPERATIONAL PROCEDURES REQUIRED TO ENFORCE THE
AMENDMENTS TO THE LAWS IDENTIFIED ABOVE:
I. RESTRICTIONS ON IMPORTATIONS OF PREVIOUSLY EXPORTED TOBACCO
PRODUCTS
A.COMMERCIAL IMPORTATIONS:
FOR PURPOSES OF THIS SECTION, PLEASE NOTE THAT THIS LAW IS
ADMINISTERED BY THE BUREAU OF ALCOHOL, TOBACCO AND FIREARMS (BATF).
THE UNITED STATES, UNDER ATF REGULATIONS, IS DEFINED AS CONSTITUTING
THE 50 STATES AND THE DISTRICT OF COLUMBIA; IT DOES NOT APPLY TO
PUERTO RICO, VIRGIN ISLANDS OR A POSSESSION OF THE UNITED STATES (FOR
EXAMPLE, GUAM). 27 CFR 275.1 DEFINES IMPORTATION AS "TOBACCO PRODUCTS
AND CIGARETTE PAPERS AND TUBES IMPORTED INTO THE UNITED STATES FROM A
FOREIGN COUNTRY OR BROUGHT INTO THE UNITED STATES FROM PUERTO RICO,
THE VIRGIN ISLANDS OR A POSSESSION OF THE UNITED STATES..."
EFFECTIVE FEBRUARY 7, 2001, THE ONLY CONDITION UNDER WHICH COMMERCIAL
SHIPMENTS OF PREVIOUSLY EXPORTED TOBACCO PRODUCTS, CIGARETTE PAPERS
AND TUBES MAY BE IMPORTED OR BROUGHT INTO THE U.S., IS BY RELEASE FROM
CUSTOMS CUSTODY, WITHOUT PAYMENT OF TAX, FOR TRANSFER TO THE ORIGINAL
MANUFACTURER OF TOBACCO PRODUCTS, CIGARETTE PAPERS AND TUBES, OR TO AN
EXPORT WAREHOUSE PROPRIETOR HOLDING A PERMIT ISSUED FROM ATF. (NOTE:
THIS LAW PREVIOUSLY DID NOT REQUIRE THE TOBACCO PRODUCTS, CIGARETTE
PAPERS AND TUBES TO BE TRANSFERRED TO THE ORIGINAL MANUFACTURER. IT
ALLOWED THE GOODS TO BE TRANSFERRED TO ANY MANUFACTURER OF TOBACCO
PRODUCTS.)
TO OBTAIN RELEASE FROM CUSTOMS CUSTODY FOR ENTRY INTO THE U.S., THE
ORIGINAL MANUFACTURER OR EXPORT WAREHOUSE PROPRIETOR MUST POSSESS AN
1ATF FORM 5200.11 (FORMERLY ATF FORM 2145), ENTITLED, "NOTICE OF
RELEASE OF TOBACCO PRODUCTS, CIGARETTE PAPERS, OR CIGARETTE TUBES,"
THAT IS CERTIFIED BY AN ATF OFFICIAL (27 CFR 275.86).
A COPY OF THE ATF FORM 5200.11 MUST BE SIGNED BY AN ATF OFFICER,
SUBMITTED AT THE TIME OF ENTRY AND ATTACHED TO THE ENTRY PACKAGE. ATF
FORM 5200.11 CERTIFIES THAT THE SHIPMENT OF TOBACCO PRODUCTS,
CIGARETTE PAPERS OR TUBES IS GOING TO A TOBACCO PRODUCTS MANUFACTURER
OR EXPORT WAREHOUSE PROPRIETOR.
B.PERSONAL-USE QUANTITY EXEMPTION:
(1)PASSENGERS-TRAVELERS MAY IMPORT PREVIOUSLY EXPORTED (RESTRICTED)
TOBACCO PRODUCTS ONLY IN QUANTITIES NOT EXCEEDING THE AMOUNTS
SPECIFIED IN EXEMPTIONS FOR WHICH THE TRAVELER QUALIFIES. ANY
QUANTITIES OF RESTRICTED TOBACCO PRODUCTS NOT PERMITTED BY AN
EXEMPTION WILL BE SEIZED AND DESTROYED. THESE ITEMS ARE TYPICALLY
PURCHASED IN DUTY FREE STORES, ON CARRIERS OPERATING INTERNATIONALLY,
OR IN FOREIGN STORES. THESE ITEMS ARE USUALLY MARKED "TAX EXEMPT.
FOR USE OUTSIDE THE U.S.," OR "U.S. TAX EXEMPT FOR USE OUTSIDE THE
U.S."
FOR EXAMPLE, A RETURNING RESIDENT, IF SHE HE CLAIMS AND IS GRANTED AN
EXEMPTION, IS ELIGIBLE FOR THE $400 EXEMPTION, WHICH MAY INCLUDE 200
CIGARETTES. IF THE RESIDENT DECLARES 400 PREVIOUSLY EXPORTED
CIGARETTES, THE RESIDENT WOULD BE PERMITTED 200 CIGARETTES, TAX-FREE
UNDER THE EXEMPTION AND THE REMAINING 200 CIGARETTES WOULD BE SEIZED.
IF A RETURNING RESIDENT IS ELIGIBLE FOR THE $400 EXEMPTION AND
DECLARES 400 CIGARETTES, OF WHICH 200 HAVE BEEN PREVIOUSLY EXPORTED
AND 200 WHICH HAVE NOT BEEN PREVIOUSLY EXPORTED, THE RESIDENT WOULD BE
PERMITTED TO IMPORT THE 200 PREVIOUSLY EXPORTED CIGARETTES TAX FREE
UNDER THE EXEMPTION AND THE RESIDENT WOULD BE CHARGED DUTY AND TAX ON
THE REMAINING 200 CIGARETTES.
II. IMPORTED CIGARETTE CERTIFICATION REQUIREMENT:
A.EFFECTIVE DECEMBER 9, 2000, THE IMPORTER MUST SUBMIT A CERTIFICATE,
AT THE TIME OF ENTRY (ATTACHED TO THE ENTRY PACKAGE), FOR EACH
SHIPMENT OF CIGARETTES AS DESCRIBED BELOW:
(1)A CERTIFICATE SIGNED BY THE MANUFACTURER OF THE PARTICULAR
SHIPMENT, OR AN AUTHORIZED OFFICIAL OF THE MANUFACTURER, STATING THAT
UNDER PENALTIES OF PERJURY, WITH RESPECT TO THE SHIPMENT OF
CIGARETTES, THAT THE MANUFACTURER HAS TIMELY SUBMITTED, AND WILL
CONTINUE TO SUBMIT TIMELY, TO THE SECRETARY OF HEALTH AND HUMAN
SERVICES, THE INGREDIENT REPORTING INFORMATION REQUIRED BY SECTION 7
OF THE FEDERAL CIGARETTE LABELING AND ADVERTISING ACT (15 U.S.C.
1335A);
1(2)A CERTIFICATE SIGNED BY THE IMPORTER, OR AN AUTHORIZED OFFICIAL OF
THE IMPORTER STATING UNDER PENALTIES OF PERJURY THAT:
THE PRECISE WARNING STATEMENTS IN THE PRECISE FORMAT REQUIRED BY
SECTION 4 OF THE FEDERAL CIGARETTE LABELING AND ADVERTISING ACT (15
U.S.C. 1333) ARE PERMANENTLY IMPRINTED ON BOTH:
(I)THE PRIMARY PACKAGING OF ALL CIGARETTES CONTAINED IN THE SHIPMENT;
AND
(II)ANY OTHER PACK, BOX, CARTON, OR CONTAINER OF ANY KIND IN WHICH
THOSE CIGARETTES ARE TO BE OFFERED FOR SALE OR OTHERWISE DISTRIBUTED
TO CONSUMERS; AND
(III)ONE OF THE FOLLOWING LABELS:
(SECTION 1333 (A)(1) STATES THAT, "IT SHALL BE UNLAWFUL FOR ANY PERSON
TO MANUFACTURE, PACKAGE, OR IMPORT FOR SALE OR DISTRIBUTION WITHIN THE
UNITED STATES ANY CIGARETTES THE PACKAGE OF WHICH FAILS TO BEAR, IN
ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION, ONE OF THE FOLLOWING
LABELS):
* SURGEON GENERAL'S WARNING: SMOKING CAUSES LUNG CANCER, HEART
DISEASE, EMPHYSEMA, AND MAY COMPLICATE PREGNANCY.
* SURGEON GENERAL'S WARNING: QUITTING SMOKING NOW GREATLY REDUCES
SERIOUS RISKS TO YOUR HEALTH.
* SURGEON GENERAL'S WARNING: SMOKING BY PREGNANT WOMEN MAY RESULT IN
FETAL INJURY, PREMATURE BIRTH, AND LOW BIRTH WEIGHT.
* SURGEON GENERAL'S WARNING: CIGARETTE SMOKE CONTAINS CARBON
MONOXIDE.
NOTE: THE SURGEON GENERAL'S WARNING LABEL MUST BE LOCATED UNDERNEATH
THE INNERMOST CELLOPHANE OR OTHER TRANSPARENT WRAPPING AND LABELS, IF
ANY. WARNINGS OR OTHER STATEMENTS SHALL BE DEEMED 'PERMANENTLY
IMPRINTED' ONLY IF PRINTED DIRECTLY ON SUCH PRIMARY PACKAGING AND NOT
BY WAY OF STICKERS OR OTHER SIMILAR DEVICES. IN ADDITION, THE
'SURGEON GENERAL'S WARNING' PORTION OF THE LABEL MUST BE IN ALL
CAPITAL LETTERS.
WITH RESPECT TO THOSE CIGARETTES BEING IMPORTED INTO THE U.S., THE
IMPORTER HAS COMPLIED, AND WILL CONTINUE TO COMPLY, WITH A ROTATION
PLAN APPROVED BY THE FEDERAL TRADE COMMISSION PURSUANT TO SECTION 4(C)
OF THE FEDERAL CIGARETTE LABELING AND ADVERTISING ACT (15 U.S.C.
1333(C)); AND
1U.S. CODE TITLE 15, SECTION 1333(C) REQUIRES THAT CIGARETTE
MANUFACTURERS AND IMPORTERS ROTATE THE FOUR MANDATED SURGEON GENERAL'S
WARNING LABELS ON CIGARETTE PACKAGING IN ACCORDANCE WITH A PLAN FILED
AND APPROVED BY THE FTC, PRIOR TO IMPORTATION INTO THE U.S.
(3)IF CIGARETTES BEAR A U.S. REGISTERED TRADEMARK, A CERTIFICATE
SIGNED BY THE OWNER OF THE TRADEMARK FOR CIGARETTES (OR A PERSON
AUTHORIZED TO ACT ON BEHALF OF THE OWNER), STATING THAT UNDER
PENALTIES OF PERJURY THAT THE OWNER (OR AUTHORIZED PERSON) CONSENTS TO
THE IMPORTATION OF SUCH CIGARETTES INTO THE U.S.; AND
(4)A CERTIFICATE SIGNED BY THE IMPORTER OR AN AUTHORIZED OFFICIAL OF
THE IMPORTER STATING THAT UNDER PENALTIES OF PERJURY THAT THE CONSENT
REFERRED TO IN SUBPARAGRAPH (A) IS ACCURATE, REMAINS IN EFFECT AND HAS
NOT BEEN WITHDRAWN.
SHIPMENTS OF CIGARETTES THAT ARE NOT ACCOMPANIED BY THE APPLICABLE
CERTIFICATES REFLECTED ABOVE ARE SUBJECT TO SEIZURE AND FORFEITURE IN
ACCORDANCE WITH 19 U.S.C. 1595(A)(C).
PERSONS ATTEMPTING TO ENTER OR INTRODUCE PRODUCTS IN VIOLATION OF
THESE PROVISIONS, THROUGH A FALSE STATEMENT, ACT OR OMISSION, ARE
SUBJECT TO A PENALTY UNDER APPLICABLE LAW, AS WELL AS TO HAVING THE
GOODS SEIZED UNDER 19 U.S.C. 1595A(C). UNDER 26 U.S.C. 5761, THE
PENALTY FOR EACH VIOLATION IS EQUAL TO THE GREATER OF $1,000 OR 5
TIMES THE AMOUNT OF THE APPLICABLE TAXES ON ALL TOBACCO PRODUCTS
(INCLUDING CIGARETTES) OR CIGARETTE PAPERS AND TUBES INVOLVED IN THE
VIOLATION.
IN SUMMARY:
THE FOLLOWING IS A REFERENCE GUIDE TO ASSIST INSPECTORS AND IMPORT
SPECIALISTS WITH THE NEW IMPORT REQUIREMENTS, EFFECTIVE IMMEDIATELY
FOR CIGARETTES AND TOBACCO PRODUCTS DISCUSSED IN THE MEMORANDUM:
1PRODUCT IMPORT REQUIREMENT
-PREVIOUSLY EXPORTED TOBACCO PRODUCTS AT THE TIME OF ENTRY, THE
OR CIGARETTE PAPERS AND TUBES. ATF FORM 5200.11 SIGNED BY AN
ATF OFFICIAL IS REQUIRED.
PERSONAL EXEMPTION: IF THE CIGARETTES HAVE BEEN MANUFACTURED AND
LABELED FOR EXPORTATION IN THE UNITED STATES (PREVIOUSLY EXPORTED
CIGARETTES), PASSENGERS TRAVELERS MAY ONLY IMPORT 200. THE REMAINING
CIGARETTES MUST BE CONFISCATED (SEE SECTION,
ACTION I. PERSONAL USE QUANTITY EXEMPTION).
----------------------------------------------------------------------
-CIGARETTES THAT DO NOT BEAR A U.S. AT THE TIME OF ENTRY, THE
REGISTERED TRADEMARK. FOLLOWING 3 SIGNED CERTIFICATES
ARE REQUIRED:
1. A CERTIFICATE REFERRING TO
COMPLIANCE
WITH SECTION 7 OF THE FEDERAL CIGARETTE
LABELING AND ADVERTISING ACT
ADMINISTERED BY THE HEALTH AND HUMAN
SERVICES.
2. A CERTIFICATE REFERRING TO
COMPLIANCE
WITH THE FEDERAL CIGARETTE LABELING AND
ADVERTISING ACT, SURGEON GENERAL'S
WARNING LABEL ADMINISTERED BY THE
FEDERAL TRADE COMMISSION.
3. A CERTIFICATE REFERRING TO
COMPLIANCE
WITH THE FEDERAL CIGARETTE LABELING AND
ADVERTISING ACT, SURGEON GENERAL'S
WARNING LABEL ROTATION PLAN.
----------------------------------------------------------------------
-CIGARETTES THAT BEAR A U.S. -IN ADDITION TO THE 3 CERTIFICATES
REGISTERED TRADEMARK. REFLECTED ABOVE,IMPORTERS MUST PROVIDE
THE
FOLLOWING 2 ADDITIONAL CERTIFICATES AT
THE TIME OF ENTRY:
4. A CERTIFICATE SIGNED BY THE TRADEMARK
HOLDER (OR AUTHORIZED REPRESENTATIVE)
CONSENTING TO THE IMPORTER'S USE OF
TRADEMARK.
1 5. A CERTIFICATE FROM THE IMPORTER
STATING THAT THE CONSENT IS ACCURATE,
REMAINS IN EFFECT AND HAS NOT BEEN
WITHDRAWN.
INFORMATION:
QUESTIONS REGARDING INFORMATION PROVIDED IN THIS DOCUMENT SHOULD BE
REFERRED TO THE LOCAL CUSTOMS PORT OF ENTRY.