82 FR 780 - Changes to Certain Alcohol-Related Regulations Governing Bond Requirements and Tax Return Filing Periods
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau Federal Register Volume 82, Issue 2 (January 4, 2017)
Alcohol and Tobacco Tax and Trade Bureau
Federal Register Volume 82, Issue 2 (January 4, 2017)
| Page Range | 780-787 | |
| FR Document | 2016-31415 |
[Federal Register Volume 82, Number 2 (Wednesday, January 4, 2017)] [Proposed Rules] [Pages 780-787] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31415] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Parts 18, 19, 24, 25, 26, 27, 28, and 30 [Docket No. TTB-2016-0013; Notice No. 167; Re: T.D. TTB-146] RIN 1513-AC30 Changes to Certain Alcohol-Related Regulations Governing Bond Requirements and Tax Return Filing Periods AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Notice of proposed rulemaking; cross-reference to temporary rule. ----------------------------------------------------------------------- [[Page 781]] SUMMARY: In a temporary rule published elsewhere in this issue of the Federal Register, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is amending its regulations relating to excise taxes imposed on distilled spirits, wines, and beer to implement certain changes made to the Internal Revenue Code of 1986 (IRC) by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). The temporary rule implements section 332 of the PATH Act, which amends the IRC to remove bond requirements and change tax return due dates for certain eligible excise taxpayers. In this document, TTB proposes to adopt the regulations in the temporary rule as a permanent regulatory change. The text of the regulations in the temporary rule serves as the text of the proposed regulations. This document also proposes to amend the regulations governing the submission of reports by certain eligible excise taxpayers. In this document, TTB is soliciting comments on the amendments adopted in the temporary rule and the amendments proposed in this notice of proposed rulemaking. DATES: Comments must be received on or before March 6, 2017. ADDRESSES: Please send your comments on this proposal to one of the following addresses. Comments submitted by other methods, including email, will not be accepted.Internet: https://www.regulations.gov (via the online comment form for this document as posted within Docket No. TTB-2016- 0013 at ``Regulations.gov,'' the Federal e-rulemaking portal); U.S. Mail: Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; or Hand delivery/courier in lieu of mail: Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 20005. See the Public Participation section of this document for specific instructions and requirements for submitting comments, and for information on how to request a public hearing. You may view copies of this document, the temporary rule, selected supporting materials, and any comments TTB receives about this proposal at https://www.regulations.gov within Docket No. TTB-2016-0013. A direct link to this docket is posted on the TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 167. You also may view copies of this document, the temporary rule, all related supporting materials, and any comments TTB receives about this proposal by appointment at the TTB Information Resource Center, 1310 G Street NW., Washington, DC 20005. Please call 202-453-2270 to make an appointment. FOR FURTHER INFORMATION CONTACT: For questions concerning this document, contact Ben Birkhill, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau (202-453-2265). SUPPLEMENTARY INFORMATION: Background TTB Authority The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers provisions in chapter 51 of the Internal Revenue Code of 1986, as amended (IRC), pertaining to the taxation of distilled spirits, wines, and beer (see title 26 of the United States Code (U.S.C.), chapter 51 (26 U.S.C. chapter 51)). TTB also regulates distilled spirits, wines, and malt beverages pursuant to the Federal Alcohol Administration Act (FAA Act). TTB administers the provisions of the IRC and FAA Act, and their implementing regulations, pursuant to section 1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). The Secretary has delegated various authorities through Treasury Department Order 120-01, dated December 10, 2013 (superseding Treasury Department Order 120-01, dated January 24, 2003), to the TTB Administrator to perform the functions and duties in administration and enforcement of these laws. Sections 5001, 5041, and 5051 of the IRC (26 U.S.C. 5001, 5041, and 5051) impose tax on distilled spirits, wines, and beer produced in or imported into the United States. Generally, taxes are determined (i.e., become due for payment) when they are removed from qualified facilities in the United States or imported as provided in sections 5006, 5043, and 5054 of the IRC (26 U.S.C. 5006, 5043, and 5054). Section 5061 of the IRC (26 U.S.C. 5061) governs the collection of tax due on distilled spirits, wines, and beer, including the time periods and due dates for paying such taxes by return. Under some circumstances, the IRC authorizes the removal of distilled spirits, wines, and beer from facilities in the United States without paying the excise taxes imposed on such products. For example, the IRC does not require payment of tax for certain transfers between qualified facilities in the United States as provided in sections 5212, 5362(b), and 5414 of the IRC (26 U.S.C. 5212, 5362(b), and 5414). The PATH Act and the Temporary Rule On December 18, 2015, the President signed into law the Consolidated Appropriations Act, 2016 (Public Law 114-113). Division Q of this Act is titled the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). Section 332 of the PATH Act amends the IRC to change tax return due dates and remove bond requirements for certain eligible taxpayers who pay excise taxes on distilled spirits, wines, and beer. With respect to tax return due dates, section 332 amends section 5061(d) of the IRC to authorize a new annual return period for deferred payment of excise tax, in addition to the preexisting quarterly and semimonthly deferred payment periods authorized under that section. Deferred payment of tax refers to payment using one of these three return periods prescribed under the IRC rather than payment immediately each time the tax becomes due. As described above, taxes on distilled spirits, wines, and beer generally become due when the products are removed from qualified facilities in the United States or imported into the United States. To be eligible to use the annual or quarterly return periods, the taxpayer must reasonably expect to be liable for not more than $1,000 in excise taxes, in the case of annual returns, or $50,000 in excise taxes, in the case of quarterly returns, for the calendar year and must have been liable for not more than these respective quantities in the preceding calendar year. Since these $1,000 and $50,000 ceilings are based on liability for payment of taxes by return under section 5061 of the IRC, they do not include liability for taxes imposed but not necessarily due, such as liability associated with taxes imposed on distilled spirits, wines, and beer produced in or imported into the United States that have not been removed from qualified facilities on payment or determination of tax. Section 332 of the PATH Act also amends several provisions of the IRC to remove bond requirements for certain taxpayers who are eligible to pay taxes on distilled spirits, wines, and beer using quarterly or annual return periods and who pay taxes on a deferred basis. Under section 332, these taxpayers are exempt from bond requirements with respect to distilled spirits and wine only to the extent those products are for nonindustrial use. The amended provisions relating to this bond exemption are sections 5173, 5351, 5401, and 5551 of the IRC. In a temporary rule published elsewhere in this issue of the Federal Register, TTB is amending the [[Page 782]] regulations in chapter I of title 27 of the Code of Federal Regulations (27 CFR) to implement section 332 of the PATH Act and to make several technical amendments to update certain bond-related provisions. The temporary rule amends regulations in 27 CFR parts 18, 19, 24, 25, 26, 27, 28, and 30. These amendments include incorporating the new annual return period into the regulations, clarifying the circumstances under which taxpayers are eligible for the bond exemption, and adding new provisions governing qualification and loss of eligibility for the bond exemption. The preamble of the temporary rule explains the proposed regulations in more detail, and this notice solicits comments on the amendments adopted in the temporary rule. The text of the regulations in the temporary rule serves as the text of the proposed regulations for purposes of this document. Proposed Amendments to Reporting Requirements In this document, TTB is also proposing to amend the regulations governing reporting requirements for distilled spirits plants (DSPs) and brewers in order to reduce unnecessary regulatory burden on some industry members who pay taxes using annual or quarterly return periods. TTB is also soliciting comments on whether to amend current reporting requirements for bonded wine cellars (including bonded wineries). These reporting provisions help protect the revenue by requiring regulated parties to submit information to TTB relating to their operations that are subject to regulation under the IRC. This section discusses current reporting requirements for these industry members and the proposed regulatory amendments. Current Reporting Requirements The regulations in 27 CFR parts 19, 24, and 25 govern the operations of DSPs, bonded wine cellars, and breweries in the United States. Under 27 CFR 19.632, DSP proprietors must submit to TTB certain monthly reports of operations. These reports are TTB Form 5110.40 (Monthly Report of Production Operations), TTB Form 5110.11 (Monthly Report of Storage Operations), TTB Form 5110.28 (Monthly Report of Processing Operations), and TTB Form 5110.43 (Monthly Report of Processing (Denaturing) Operations). Under the current regulations, DSPs may not file required reports less frequently than monthly. Under 27 CFR 24.300(g), bonded wine cellars must generally file reports on a monthly basis using TTB Form 5120.17 (Report of Wine Premises Operations), but they may file reports quarterly or annually if they meet the criteria to do so. To be eligible to file reports on a quarterly basis, the proprietor must be filing quarterly tax returns, and the proprietor must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 60,000 gallons for any one quarter during the calendar year when adding up certain wine on the proprietor's premises. The wine that must be taken into account for this purpose is wine on hand at the beginning of the month, bulk wine produced by fermentation, sweetening, blending, amelioration or addition of wine spirits, bulk wine bottled, bulk and bottled wine received in bond, taxpaid wine returned to bond, bottled wine dumped to bulk, inventory gains, and any activity written in the untitled lines of the report which increases the amount of wine to be accounted for. The wines that must be taken into account for this purpose are wines on which taxes are imposed but not necessarily due, since the wines are not reported as withdrawn on payment or determination of tax. To be eligible to file reports on an annual basis, the proprietor must be filing annual tax returns, and the proprietor must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 20,000 gallons for any one month during the calendar year when adding up certain wine on the proprietor's premises. The wine that must be taken into account for this purpose is the same as the wine that must be taken into account for purposes of determining eligibility for quarterly reporting. Under 27 CFR 25.297, each brewer must file a monthly report using TTB Form 5130.9 (Brewer's Report of Operations), unless the brewer is required to file reports on a quarterly basis. A brewer must file quarterly reports using TTB Form 5130.26 (Quarterly Brewer's Report of Operations) or TTB Form 5130.9 if the brewer was liable for not more than $50,000 in taxes with respect to beer in the preceding calendar year and reasonably expects to be liable for not more than $50,000 in such taxes during the current calendar year. As referenced above, a brewer who meets these $50,000 ceilings is eligible to pay taxes quarterly under section 5061 of the IRC. Since these $50,000 ceilings are based on liability for payment of taxes by return under section 5061 of the IRC, they do not include liability for taxes imposed but not necessarily due. Proposed Amendments and Solicitation of Comments TTB is proposing to amend the reporting regulations applicable to DSPs and brewers, and TTB is soliciting comments on whether to amend the reporting regulations for bonded wine cellars. TTB proposes to amend the regulations to authorize new quarterly and annual reporting periods for certain DSPs, to authorize a new annual reporting period for certain brewers, and to change the existing quarterly reporting requirements for brewers. As discussed further below, the proposed criteria for quarterly and annual reporting by DSPs and brewers are modeled in part on the current criteria for quarterly and annual reporting by bonded wine cellars, with some modifications. TTB is soliciting comment on whether these modified criteria should be adopted for DSPs and brewers. TTB is also requesting comment on whether it should instead adopt criteria for quarterly and annual reporting by DSPs and brewers that resemble the requirements used for such reporting by bonded wine cellars (i.e., by taking into account the sum of certain products listed on specific lines of proprietors' reports). In addition, TTB is soliciting comment on whether it should amend the current requirements for quarterly and annual reporting by bonded wine cellars so that the requirements are consistent with the proposed modified criteria for quarterly and annual reporting by DSPs and brewers. Under the proposed amendments to Sec. Sec. 19.632 and 25.297, DSPs and brewers must report monthly unless they are required to report quarterly or annually. Under the proposed amendments, DSPs and brewers must report quarterly for a calendar year if they file quarterly tax returns for that calendar year and if their liability for taxes on alcohol for which taxes have not been paid does not exceed $50,000 at any time during that calendar year. For purposes of the latter criterion, liability for taxes that have not been paid includes liability for taxes determined but not yet paid and liability for taxes imposed but not necessarily due for payment. Under the proposed amendments, DSPs and brewers must report annually if they file annual tax returns and if their liability for taxes on alcohol for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. The purpose of these eligibility criteria is to reduce reporting burdens on taxpayers whose tax payments do not exceed the ceilings described above for paying taxes quarterly or annually and [[Page 783]] whose liability for taxes that have not been paid does not exceed $50,000. As discussed below, both types of liability are relevant for determining required reporting frequency for revenue protection purposes. The proposed criteria for quarterly and annual reporting in amended Sec. Sec. 19.632 and 25.297 are modeled in part on the current criteria for quarterly and annual reporting by bonded wine cellars, which are based on both the frequency with which the proprietor pays taxes by return and the proprietor's liability for alcohol on which taxes have not been paid. Both factors are relevant for determining required reporting frequency because they relate to the proprietor's overall tax liability under the IRC. Generally, more frequent reporting is necessary for a proprietor who has greater tax liability because TTB needs more detailed information regarding the proprietor's operations for revenue protection purposes. More frequent reporting is necessary for proprietors who use more frequent return periods for paying tax because such proprietors generally have greater liability for taxes due for payment. In addition, since a proprietor's liability for taxes imposed but not necessarily due also raises revenue risks, this type of tax liability must also be taken into account for determining appropriate reporting frequency. With respect to return periods, TTB believes it is appropriate to require that DSPs and brewers pay taxes on an annual or quarterly basis to be eligible to report on an annual or quarterly basis, respectively. This requirement under proposed Sec. Sec. 19.632 and 25.297 is consistent with current reporting requirements for bonded wine cellars under Sec. 24.300(g). With respect to liability for taxes imposed but not necessarily due, TTB has determined that the proposed $50,000 maximum discussed above for DSPs and brewers reporting quarterly and annually is necessary for revenue protection purposes. The $50,000 limit ensures that DSPs and brewers reporting quarterly or annually who pay excise taxes using quarterly or annual return periods do not engage in operations that involve significant tax liability for which the IRC does not require payment of tax, such as certain transfers of alcohol between qualified facilities in the United States (see sections 5212, 5362(b), and 5414 of the IRC). Since DSPs and brewers who report quarterly or annually meet the tax payment ceilings for the use of quarterly or annual return periods, TTB has determined that this $50,000 limit on taxes imposed but not necessarily due is appropriate for both quarterly and annual reporters. Quarterly and annual reporters will be subject to different tax payment ceilings based on the tax return period they use, and the $50,000 limit is simply intended to ensure that neither category of reporters engages in operations that involve significant tax liability for which the IRC does not require payment of tax. The $50,000 maximum for DSPs and brewers under proposed Sec. Sec. 19.632 and 25.297 is different from current quarterly and annual reporting requirements for bonded wine cellars. Under Sec. 24.300(g), bonded wine cellars must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 60,000 gallons for any one quarter (in the case of quarterly reporting) or 20,000 gallons for any one month (in the case of annual reporting) when adding up certain wine on the proprietor's premises as described above. Because section 5041 of the IRC imposes several different tax rates on wine, the tax liability associated with these quantities may or may not exceed $50,000, depending on the circumstances. TTB is soliciting comment on whether there are wine-specific reasons for retaining the 60,000-gallon and 20,000-gallon limits in the regulations and whether it would instead be appropriate for consistency purposes to amend Sec. 24.300(g) to incorporate the same $50,000 maximum that TTB is proposing for DSPs and brewers under Sec. Sec. 19.632 and 25.297. Finally, TTB is also requesting comment on whether it should amend Sec. 24.300(g) to require (rather than simply allow) the use of quarterly and annual reporting periods for bonded wine cellars who meet the criteria to use them. Under the current regulations, such proprietors may choose to submit reports monthly even though they are eligible to report less frequently. TTB believes that requiring less frequent reporting for eligible proprietors would reduce reporting burdens on proprietors and would reduce report processing burdens on TTB. TTB is therefore soliciting comment on whether there are wine- specific reasons for continuing to allow the voluntary use of quarterly or annual reporting periods for bonded wine cellars that are eligible to use them. Public Participation Comments Sought TTB requests comments from interested members of the public on the regulations adopted in the temporary rule and the additional regulatory amendments proposed in this document. In addition, TTB is requesting comments whether it should amend the current requirements for quarterly and annual reporting by bonded wine cellars so that the requirements are consistent with the criteria proposed in this document for quarterly and annual reporting by DSPs and brewers. Submitting Comments You may submit comments on this proposal by one of the following three methods: Federal e-Rulemaking Portal: You may electronically submit comments via the online comment form posted with this proposed rule within Docket No. TTB-2016-0013 on ``Regulations.gov,'' the Federal e- rulemaking portal. A direct link to that docket is available on the TTB Web site at https://www.ttb.gov/spirits/spirits-rulemaking.shtml. Supplemental files may be attached to comments submitted via Regulations.gov. For information on how to use Regulations.gov, visit the site and click on the ``Help'' tab. Mail: You may send comments via postal mail to the Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005. 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 400, Washington, DC 20005. Please submit your comments by the closing date shown above in this proposed rule. Your comments must reference Notice No. 167 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. TTB does not acknowledge receipt of comments and considers all comments as originals. In your comment, please clearly state if you are commenting for yourself or on behalf of an association, business, or other entity. If you are commenting on behalf of an entity, your comment must include the entity's name as well as your name and position title. In your comment via Regulations.gov, please enter the entity's name in the ``Organization'' blank of the online comment form. If you comment via postal mail or hand delivery/courier, 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 [[Page 784]] 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 inappropriate for public disclosure. Public Disclosure TTB will post, and you may view, copies of this proposed rule, the temporary rule, and any online or mailed comments received about this proposal within Docket No. TTB-2016-0013 on the Federal e-rulemaking portal. A direct link to that docket is available on the TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 167. You may also reach the relevant docket through the Regulations.gov search page at https://www.regulations.gov. For information on how to use Regulations.gov, click on the site's ``Help'' tab. 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 email addresses. TTB may omit voluminous attachments or material that it considers unsuitable for posting. You may view copies of this proposed rule, the temporary rule, and any electronic or mailed comments TTB receives about this proposal by appointment at the TTB Information Resource Center, 1310 G Street NW., Washington, DC 20005. You may also obtain copies for 20 cents per 8.5- x 11-inch page. Contact TTB's 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 Flexibility Act TTB certifies that this proposed regulation, if adopted, will not have a significant economic impact on a substantial number of small entities. The proposed amendments would reduce reporting requirements for certain proprietors described in this document. The proposed rule, if adopted, 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. Pursuant to 26 U.S.C. 7805(f), TTB will submit the proposed regulations to the Chief Counsel for Advocacy of the Small Business Administration for comment on the impact of the proposed regulations on small businesses. Executive Order 12866 Certain TTB regulations issued under the IRC, including this one, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory impact assessment is not required. Paperwork Reduction Act The six collections of information associated with the proposed regulatory requirements discussed in this notice of proposed rulemaking (including the regulatory requirements relating to wine reporting on which TTB is seeking comment) have been previously reviewed and approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) and assigned control numbers 1513-0007, 1513-0039, 1513-0041, 1513-0047, 1513-0049, and 1513-0053. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. The proposed regulatory text in 27 CFR 19.632 contains alterations to the information collections currently approved under OMB control numbers 1513-0039, 1513-0041, 1513-0047, and 1513-0049. These control numbers cover, respectively, TTB Forms 5110.11, 5110.28, 5110.40, and 5110.43. If adopted, these revisions would provide for less frequent reporting by certain DSPs. Under the current regulations, DSPs must submit required reports on a monthly basis. Under the proposed regulatory amendments, a DSP would report quarterly if they file quarterly tax returns and would report annually if they file annual tax returns as long as, in either case, the DSP's liability for taxes on distilled spirits for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. Taking into account the proposed regulatory amendments, TTB estimates the burden associated with these information collections as follows: 1513-0039 Estimated number of respondents: 684 reporting monthly; 651 reporting quarterly; 424 reporting annually. Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. Estimated average annual total burden hours: 11,236. 1513-0041 Estimated number of respondents: 634 reporting monthly; 603 reporting quarterly; 392 reporting annually. Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. Estimated average annual total burden hours: 20,824. 1513-0047 Estimated number of respondents: 571 reporting monthly; 544 reporting quarterly; 354 reporting annually. Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. Estimated average annual total burden hours: 18,764. 1513-0049 Estimated number of respondents: 184 reporting monthly; 175 reporting quarterly; 114 reporting annually. Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. Estimated average annual total burden hours: 3,022. The proposed regulatory text in 27 CFR 25.297 contains alterations to the information collection currently approved under OMB control number 1513-0007. This control number covers TTB Forms 5130.9 and 5130.26. If adopted, these revisions would provide for less frequent reporting by certain brewers who file annual tax returns and would continue to authorize quarterly reporting by certain brewers who file quarterly tax returns. In the case of a brewer who reports quarterly or annually, the brewer's liability for taxes on beer for which taxes have not been paid must not exceed $50,000 at any time during the calendar year. Taking into account the proposed regulatory amendments, TTB estimates the burden associated with this information collection as follows: Estimated number of respondents: 1,344 reporting monthly; 2,998 reporting quarterly; 1,956 reporting annually. Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. Estimated average annual total burden hours: 22,557. Finally, TTB is requesting comments on whether to amend Sec. 24.300(g) so that the reporting requirements for bonded wine cellars on TTB Form 5120.17 are consistent with the proposed reporting [[Page 785]] requirements for DSPs and brewers. The reporting requirements in Sec. 24.300(g) are covered under OMB control number 1513-0053. Similar to the proposed amendments for DSPs and brewers, the current reporting provisions for bonded wine cellars require that the proprietor file tax returns quarterly or annually to be eligible for quarterly or annual reporting, respectively. In addition, the proprietor must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 60,000 gallons for any one quarter (in the case of quarterly reporting) or 20,000 gallons for any one month (in the case of annual reporting) when adding up certain wine on the proprietor's premises. TTB is soliciting comment on whether to adopt the proposed $50,000 limit described above for DSPs and brewers in lieu of the 20,000-gallon and 60,000-gallon limits in the current regulations. TTB does not estimate that this change, if adopted, would result in changes in reporting burden for proprietors. We are, however, reporting an increase in the number of respondents to this collection to reflect the current number of proprietors who file the form. TTB estimates the burden associated with this information collection as follows: Estimated number of respondents: 2,316 reporting monthly; 4,733 reporting quarterly; 4,467 reporting annually. Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. Estimated average annual total burden hours: 56,310. Revisions of these six currently approved collections have been submitted to OMB for review. Comments on the revisions should be sent to OMB at Office of Management and Budget, Attention: Desk Officer for the Department of the Treasury, Office of Information and Regulatory Affairs, Washington, DC 20503 or by email to [email protected]. A copy should also be sent to TTB by any of the methods previously described. Comments on the information collections should be submitted no later than March 6, 2017. Comments are specifically requested concerning: Whether the proposed revisions of the collections of information are necessary for the proper performance of the functions of the Alcohol and Tobacco Tax and Trade Bureau, including whether the information will have practical utility; The accuracy of the estimated burdens associated with the proposed revisions of the collections of information; How to enhance the quality, utility, and clarity of the information to be collected; How to minimize the burden of complying with the proposed revision of the collection of information, including the application of automated collection techniques or other forms of information technology; and Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Drafting Information Ben Birkhill of the Regulations and Rulings Division drafted this document with the assistance of other Alcohol and Tobacco Tax and Trade Bureau personnel. List of Subjects 27 CFR Part 18 Alcohol and alcoholic beverages, Fruits, Reporting and recordkeeping requirements, Spices and flavorings. 27 CFR Part 19 Administrative practice and procedure, Alcohol and alcoholic beverages, Authority delegations (Government agencies), Caribbean Basin initiative, Chemicals, Claims, Customs duties and inspection, Electronic funds transfers, Excise taxes, Exports, Gasohol, Imports, Labeling, Liquors, Packaging and containers, Puerto Rico, Reporting and recordkeeping requirements, Research, Security measures, Spices and flavorings, Stills, Surety bonds, Transportation, Vinegar, Virgin Islands, Warehouses, Wine. 27 CFR Part 24 Administrative practice and procedure, Claims, Electronic funds transfers, Excise taxes, Exports, Food additives, Fruit juices, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Research, Scientific equipment, Spices and flavorings, Surety bonds, Vinegar, Warehouses, Wine. 27 CFR Part 25 Beer, Claims, Electronic funds transfers, Excise taxes, Exports, Labeling, Packaging and containers, Reporting and recordkeeping requirements, Research, Surety bonds. 27 CFR Part 26 Alcohol and alcoholic beverages, Caribbean Basin initiative, Claims, Customs duties and inspection, Electronic funds transfers, Excise taxes, Packaging and containers, Puerto Rico, Reporting and recordkeeping requirements, Surety bonds, Virgin Islands, Warehouses. 27 CFR Part 27 Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties and inspection, Electronic funds transfers, Excise taxes, Imports, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Wine. 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 30 Liquors, Scientific equipment. Proposed Regulatory Amendments For the reasons discussed in the preamble, TTB proposes to amend 27 CFR, chapter I, parts 18, 19, 24, 25, 26, 27, 28, and 30 as set forth below: PART 18--PRODUCTION OF VOLATILE FRUIT-FLAVOR CONCENTRATE 0 1. The authority citation for part 18 is revised to read as follows: Authority: 26 U.S.C. 5001, 5171-5173, 5178, 5179, 5203, 5351, 5354, 5356, 5511, 5552, 6065, 6109, 7805. 0 2. [The proposed amendatory instructions and the proposed regulatory text for part 18 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. PART 19--DISTILLED SPIRITS PLANTS 0 3. The authority citation for part 19 continues to read as follows: Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004- 5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114, 5121-5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306. 0 4. [With the addition of the amendatory instructions and proposed regulatory text set forth below, the [[Page 786]] proposed amendatory instructions and the proposed regulatory text for part 19 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. Sec. 19.147 [Amended] 0 5. In Sec. 19.147, paragraph (d) is amended by removing the word ``monthly''. 0 6. Section 19.632 is revised to read as follows: Sec. 19.632 Submission of reports. (a) General. Each proprietor must submit reports of its distilled spirits plant operations to TTB in accordance with paragraph (b) of this section. The proprietor must submit the original reports to TTB and must retain a copy for its records. The required report forms are as follows: (1) Report of Production Operations, form TTB F 5110.40, except that no report is required when production operations are suspended as provided in Sec. 19.292; (2) Report of Storage Operations, form TTB F 5110.11; (3) Report of Processing Operations, form TTB F 5110.28; and (4) Monthly Report of Processing (Denaturing) Operations, form TTB F 5110.43. (b) Reporting periods. Each proprietor must submit the reports specified in paragraph (a) of this section to the Director, National Revenue Center, not later than the 15th day following the last day of the reporting periods specified in this paragraph. A proprietor may submit reports in either paper format or electronically via TTB Pay.gov. The required reporting periods are as follows: (1) Monthly reporting periods. Except in cases where the proprietor must submit reports covering each calendar quarter or calendar year of operations under paragraphs (b)(2) or (b)(3) of this section, a proprietor must submit reports covering for each month of operations. (2) Quarterly reporting periods. A proprietor must submit reports covering each calendar quarter of operations if both of the following are true: (i) The proprietor files quarterly tax returns pursuant to Sec. 19.235; and (ii) The proprietor's liability for tax on spirits for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. (3) Annual reporting periods. A proprietor must submit reports covering for each calendar year of operations if both of the following are true: (i) The proprietor files annual tax returns pursuant to Sec. 19.235; and (ii) The proprietor's liability for tax on spirits for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. (c) Loss of eligibility for quarterly or annual reporting--(1) General. If a proprietor is using a reporting period under paragraph (b)(2) or (b)(3) of this section but becomes required to use a more frequent reporting period due to changes in the proprietor's return filing frequency or tax liability, the proprietor must: (i) File the appropriate report form or forms beginning with the first quarterly or monthly reporting period during which the proprietor became required to report in that period; and (ii) Concurrently file the appropriate report form or forms covering any previous quarters of the calendar year (in the case of a proprietor who was previously authorized to submit reports annually) or any previous months of the calendar quarter (in the case of a proprietor who was previously authorized to submit reports quarterly). (2) Required statement. When filing the first quarterly or monthly report form or forms described in paragraph (c)(1)(i) of this section, a proprietor must state on the form or forms that the proprietor is increasing the frequency of its reporting and henceforth will submit quarterly or monthly reports, as applicable. The proprietor must then continue to file the appropriate form or forms for each subsequent quarter or month of that calendar year. (d) More frequent reporting required by TTB. The appropriate TTB officer may at any time require a proprietor who is reporting quarterly or annually to report more frequently if there is a jeopardy to the revenue. PART 24--WINE 0 7. The authority citation for part 24 continues to read as follows: Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 5044, 5061, 5062, 5121, 5122-5124, 5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364-5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306. 0 8. [The proposed amendatory instructions and the proposed regulatory text for part 24 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. PART 25--BEER 0 9. 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, 5121, 5122-5124, 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, 7342, 7606, 7805; 31 U.S.C. 9301, 9303-9308. 0 10. [With the addition of the amendatory instructions and proposed regulatory text set forth below, the proposed amendatory instructions and the proposed regulatory text for part 25 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. 0 11. Section 25.297 is revised to read as follows: Sec. 25.297 Report of Operations, Form 5130.9 or Form 5130.26. (a) Monthly report of operations. Except as provided in paragraph (b) or (c) of this section, each brewer must prepare and submit a monthly report of brewery operations on Form 5130.9. (b) Quarterly report of operations. A brewer must file quarterly Form 5130.9 or Form 5130.26 (or any successor forms) if both of the following are true: (1) The brewer files quarterly tax returns pursuant to Sec. 25.164; and (2) The brewer's liability for tax on beer for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. (c) Annual report of operations. A brewer must file annual Form 5130.9 or Form 5130.26 (or any successor forms) if both of the following are true: (1) The brewer files annual tax returns pursuant to Sec. 25.164; and (2) The brewer's liability for tax on beer for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. (d) Loss of eligibility for quarterly or annual reporting--(1) General. If a brewer using a reporting period under paragraph (b) or (c) of this section becomes required to use a more frequent reporting period, the brewer must: (i) File the appropriate report form beginning with the first quarterly or monthly period during which the brewer became required to use that period; and (ii) Concurrently file the appropriate report form or forms covering any previous quarters of the calendar year (in the case of a brewer who was previously authorized to submit reports annually) or any previous months of the [[Page 787]] calendar quarter (in the case of a brewer who was previously authorized to submit reports quarterly). (2) Required statement. When filing the first quarterly or monthly report described in paragraph (d)(1)(i) of this section, a brewer must state on the form that it is increasing the frequency of its reporting and henceforth will submit quarterly or monthly reports, as applicable. The brewer must then continue to file the appropriate form for each subsequent quarter or month of that calendar year. (e) More frequent reporting required by TTB. The appropriate TTB officer may at any time require a brewer who is filing Form 5130.9 or Form 5130.26 quarterly or annually to file such reports more frequently if there is a jeopardy to the revenue. (f) Submission and retention. The brewer may submit reports in either paper format or electronically via TTB Pay.gov. The brewer must retain a copy of Form 5130.9 or Form 5130.26 (or any successor form) in either paper or electronic format as part of the brewery records. PART 26--LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS 0 12. The authority citation for part 26 is revised to read as follows: Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 5051, 5061, 5111-5114, 5121, 5122-5124, 5131-5132, 5207, 5232, 5271, 5275, 5301, 5314, 5555, 6001, 6109, 6301, 6302, 6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303, 9304, 9306. 0 13. [The proposed amendatory instructions and the proposed regulatory text for part 26 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. PART 27--IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER 0 14. The authority citation for part 27 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, 5010, 5041, 5051, 5054, 5061, 5121, 5122-5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6109, 6302, 7805. 0 15. [The proposed amendatory instructions and the proposed regulatory text for part 27 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. PART 28--EXPORTATION OF ALCOHOL 0 16. 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, 5054, 5061, 5121, 5122, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6109, 6302, 7805; 27 U.S.C. 203, 205; 44 U.S.C. 3504(h). 0 17. [The proposed amendatory instructions and the proposed regulatory text for part 28 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. PART 30--GAUGING MANUAL 0 18. The authority citation for part 30 continues to read as follows: Authority: 26 U.S.C. 7805. 0 19. [The proposed amendatory instructions and the proposed regulatory text for part 30 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. Signed: December 21, 2016. Mary G. Ryan, Acting Administrator. Approved: December 22, 2016. Timothy E. Skud, Deputy Assistant Secretary. (Tax, Trade, and Tariff Policy). [FR Doc. 2016-31415 Filed 1-3-17; 8:45 am] BILLING CODE 4810-31-P
![780 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules
annual implementation or replacement Order 12372 regarding used to cross reference this action with
costs began, the State and local agencies intergovernmental consultation on the Unified Agenda.
are estimated to have nationwide start- Federal programs and activities apply to
List of Subjects in 23 CFR Part 655
up implementation costs of $29.4 this program.
million to develop maintenance Design standards, Grant programs—
Paperwork Reduction Act Transportation, Highways and roads,
methods and purchase measurement
equipment. Finally, the compliance Under the Paperwork Reduction Act Incorporation by reference, Pavement
dates to replace markings that do not of 1995 (PRA) (44 U.S.C. 3501, et seq.), markings, Traffic regulations.
meet the minimum retroreflectivity have Federal agencies must obtain approval Issued in Washington, DC under authority
been eliminated. Although agencies will from the Office of Management and delegated in 49 CFR 1.85.
still need to replace these markings, Budget for each collection of Gregory G. Nadeau,
their schedules would be based on their information they conduct, sponsor, or Administrator, Federal Highway
method for maintaining retroreflectivity require through regulations. The FHWA Administration.
as well as their resources and relative has determined that this proposed
priorities. Therefore, this proposed rule For the reasons stated in the
action does not contain a collection of preamble, FHWA proposes to amend
would not result in the expenditure by information requirement for the
State, local, and tribal governments, in title 23, Code of Federal Regulations,
purposes of the PRA. part 655, subpart F as follows:
the aggregate, or by the private sector, of
$151 million or more in any one year. Executive Order 12988 (Civil Justice
Reform) PART 655—TRAFFIC OPERATIONS
In addition, pavement marking
replacement is eligible for up to 100 This proposed action meets ■ 1. The authority for part 655 is revised
percent Federal-aid funding. This applicable standards in Sections 3(a) to read as follows:
applies to local jurisdictions and tribal and 3(b)(2) of Executive Order 12988, Authority: 23 U.S.C. 101(a), 104, 109(d),
governments, pursuant to 23 U.S.C. Civil Justice Reform, to minimize 114(a), 217, 315 and 402(a); 23 CFR 1.32; and
120(c). Further, the definition of litigation, to eliminate ambiguity, and to 49 CFR 1.85.
‘‘Federal Mandate’’ in the Unfunded reduce burden.
Mandates Reform Act excludes financial Subpart F—Traffic Control Devices on
assistance of the type in which State, Executive Order 13045 (Protection of Federal-Aid and Other Streets and
local, or tribal governments have Children) Highways [Amended]
authority to adjust their participation in The FHWA has analyzed this
the program in accordance with changes ■ 2. Revise § 655.601(d)(2)(i), to read as
proposed action under Executive Order follows:
made in the program by the Federal 13045, Protection of Children from
Government. The Federal-aid highway Environmental Health Risks and Safety § 655.601 Purpose
program permits this type of flexibility. Risks. This is not an economically * * * * *
Executive Order 13175 (Tribal significant action and does not concern (d) * * *
Consultation) an environmental risk to health or safety (2) * * *
that might disproportionately affect (i) Manual on Uniform Traffic Control
The FHWA has analyzed this
children. Devices for Streets and Highways
proposed action under Executive Order
13175, dated November 6, 2000, and Executive Order 12630 (Taking of (MUTCD), 2009 edition, including
believes that it would not have Private Property) Revision No. 1 and No. 2, dated May
substantial direct effects on one or more 2012, and No. [number to be inserted],
This proposed action would not affect dated [date to be inserted], FHWA.
Indian tribes, would not impose
a taking of private property or otherwise * * * * *
substantial direct compliance costs on
have taking implications under [FR Doc. 2016–31249 Filed 1–3–17; 8:45 am]
Indian tribal governments, and would
Executive Order 12630, Governmental
not preempt tribal law. Therefore, a BILLING CODE 4910–22–P
Actions and Interference with
tribal summary impact statement is not
Constitutionally Protected Property
required.
Rights. DEPARTMENT OF THE TREASURY
Executive Order 13211 (Energy Effects)
National Environmental Policy Act
The FHWA has analyzed this Alcohol and Tobacco Tax and Trade
proposed action under Executive Order The agency has analyzed this Bureau
13211, Actions Concerning Regulations proposed action for the purpose of the
That Significantly Affect Energy Supply, National Environmental Policy Act of 27 CFR Parts 18, 19, 24, 25, 26, 27, 28,
Distribution, or Use. The FHWA has 1969 (42 U.S.C. 4321 et seq.) and has and 30
determined that this is not a significant determined that it will not have any
significant effect on the quality of the [Docket No. TTB–2016–0013; Notice No.
energy action under that order because 167; Re: T.D. TTB–146]
it is not likely to have a significant environment and is categorically
adverse effect on the supply, excluded under 23 CFR 771.117(c)(20). RIN 1513–AC30
distribution, or use of energy. Therefore, Regulation Identifier Number Changes to Certain Alcohol-Related
a Statement of Energy Effects under
mstockstill on DSK3G9T082PROD with PROPOSALS
A regulation identification number Regulations Governing Bond
Executive Order 13211 is not required.
(RIN) is assigned to each regulatory Requirements and Tax Return Filing
Executive Order 12372 action listed in the Unified Agenda of Periods
(Intergovernmental Review) Federal Regulations. The Regulatory AGENCY: Alcohol and Tobacco Tax and
Catalog of Federal Domestic Information Service Center publishes Trade Bureau, Treasury.
Assistance Program Number 20.205, the Unified Agenda in April and
ACTION: Notice of proposed rulemaking;
Highway Planning and Construction. October of each year. The RIN contained
cross-reference to temporary rule.
The regulations implementing Executive in the heading of this document can be
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![Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules 785
requirements for DSPs and brewers. The revisions of the collections of Packaging and containers, Puerto Rico,
reporting requirements in § 24.300(g) are information; Reporting and recordkeeping
covered under OMB control number • How to enhance the quality, utility, requirements, Surety bonds, Virgin
1513–0053. Similar to the proposed and clarity of the information to be Islands, Warehouses.
amendments for DSPs and brewers, the collected;
• How to minimize the burden of 27 CFR Part 27
current reporting provisions for bonded
wine cellars require that the proprietor complying with the proposed revision Alcohol and alcoholic beverages,
file tax returns quarterly or annually to of the collection of information, Beer, Cosmetics, Customs duties and
be eligible for quarterly or annual including the application of automated inspection, Electronic funds transfers,
reporting, respectively. In addition, the collection techniques or other forms of Excise taxes, Imports, Labeling, Liquors,
proprietor must not expect the sum of information technology; and Packaging and containers, Reporting
the bulk and bottled wine to be • Estimates of capital or start-up costs and recordkeeping requirements, Wine.
accounted for in all tax classes to exceed and costs of operation, maintenance,
and purchase of services to provide 27 CFR Part 28
60,000 gallons for any one quarter (in
the case of quarterly reporting) or 20,000 information. Aircraft, Alcohol and alcoholic
gallons for any one month (in the case beverages, Armed forces, Beer, Claims,
Drafting Information
of annual reporting) when adding up Excise taxes, Exports, Foreign trade
certain wine on the proprietor’s Ben Birkhill of the Regulations and zones, Labeling, Liquors, Packaging and
premises. TTB is soliciting comment on Rulings Division drafted this document containers, Reporting and recordkeeping
whether to adopt the proposed $50,000 with the assistance of other Alcohol and requirements, Surety bonds, Vessels,
limit described above for DSPs and Tobacco Tax and Trade Bureau Warehouses, Wine.
brewers in lieu of the 20,000-gallon and personnel.
27 CFR Part 30
60,000-gallon limits in the current List of Subjects
regulations. TTB does not estimate that Liquors, Scientific equipment.
this change, if adopted, would result in 27 CFR Part 18
Proposed Regulatory Amendments
changes in reporting burden for Alcohol and alcoholic beverages,
Fruits, Reporting and recordkeeping For the reasons discussed in the
proprietors. We are, however, reporting
requirements, Spices and flavorings. preamble, TTB proposes to amend 27
an increase in the number of
CFR, chapter I, parts 18, 19, 24, 25, 26,
respondents to this collection to reflect 27 CFR Part 19 27, 28, and 30 as set forth below:
the current number of proprietors who
file the form. TTB estimates the burden Administrative practice and
procedure, Alcohol and alcoholic PART 18—PRODUCTION OF
associated with this information VOLATILE FRUIT-FLAVOR
collection as follows: beverages, Authority delegations
(Government agencies), Caribbean Basin CONCENTRATE
• Estimated number of respondents:
2,316 reporting monthly; 4,733 initiative, Chemicals, Claims, Customs ■ 1. The authority citation for part 18 is
reporting quarterly; 4,467 reporting duties and inspection, Electronic funds revised to read as follows:
annually. transfers, Excise taxes, Exports, Gasohol,
Imports, Labeling, Liquors, Packaging Authority: 26 U.S.C. 5001, 5171–5173,
• Estimated annual frequency of 5178, 5179, 5203, 5351, 5354, 5356, 5511,
responses: 12 for monthly reporting; 4 and containers, Puerto Rico, Reporting
5552, 6065, 6109, 7805.
for quarterly reporting; 1 for annual and recordkeeping requirements,
Research, Security measures, Spices and ■ 2. [The proposed amendatory
reporting. instructions and the proposed
• Estimated average annual total flavorings, Stills, Surety bonds,
Transportation, Vinegar, Virgin Islands, regulatory text for part 18 are the same
burden hours: 56,310. as the amendatory instructions and the
Revisions of these six currently Warehouses, Wine.
amendatory regulatory text set forth in
approved collections have been 27 CFR Part 24 the temporary rule on this subject
submitted to OMB for review. Administrative practice and published in the Rules and Regulations
Comments on the revisions should be procedure, Claims, Electronic funds section of this issue of the Federal
sent to OMB at Office of Management transfers, Excise taxes, Exports, Food Register].
and Budget, Attention: Desk Officer for additives, Fruit juices, Labeling,
the Department of the Treasury, Office Liquors, Packaging and containers, PART 19—DISTILLED SPIRITS
of Information and Regulatory Affairs, Reporting and recordkeeping PLANTS
Washington, DC 20503 or by email to requirements, Research, Scientific
OIRA_submissions@omb.eop.gov. A ■ 3. The authority citation for part 19
equipment, Spices and flavorings, continues to read as follows:
copy should also be sent to TTB by any Surety bonds, Vinegar, Warehouses,
of the methods previously described. Wine. Authority: 19 U.S.C. 81c, 1311; 26 U.S.C.
Comments on the information 5001, 5002, 5004–5006, 5008, 5010, 5041,
collections should be submitted no later 27 CFR Part 25 5061, 5062, 5066, 5081, 5101, 5111–5114,
than March 6, 2017. Comments are 5121–5124, 5142, 5143, 5146, 5148, 5171–
Beer, Claims, Electronic funds 5173, 5175, 5176, 5178–5181, 5201–5204,
specifically requested concerning: transfers, Excise taxes, Exports, 5206, 5207, 5211–5215, 5221–5223, 5231,
• Whether the proposed revisions of Labeling, Packaging and containers,
mstockstill on DSK3G9T082PROD with PROPOSALS
5232, 5235, 5236, 5241–5243, 5271, 5273,
the collections of information are Reporting and recordkeeping 5301, 5311–5313, 5362, 5370, 5373, 5501–
necessary for the proper performance of requirements, Research, Surety bonds. 5505, 5551–5555, 5559, 5561, 5562, 5601,
the functions of the Alcohol and 5612, 5682, 6001, 6065, 6109, 6302, 6311,
Tobacco Tax and Trade Bureau, 27 CFR Part 26 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301,
including whether the information will Alcohol and alcoholic beverages, 9303, 9304, 9306.
have practical utility; Caribbean Basin initiative, Claims, ■ 4. [With the addition of the
• The accuracy of the estimated Customs duties and inspection, amendatory instructions and proposed
burdens associated with the proposed Electronic funds transfers, Excise taxes, regulatory text set forth below, the
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![786 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules
proposed amendatory instructions and (i) The proprietor files annual tax PART 25—BEER
the proposed regulatory text for part 19 returns pursuant to § 19.235; and
are the same as the amendatory (ii) The proprietor’s liability for tax on ■ 9. The authority citation for part 25
instructions and the amendatory spirits for which taxes have not been continues to read as follows:
regulatory text set forth in the temporary paid does not exceed $50,000 at any Authority: 19 U.S.C. 81c; 26 U.S.C. 5002,
rule on this subject published in the time during the calendar year. 5051–5054, 5056, 5061, 5121, 5122–5124,
Rules and Regulations section of this (c) Loss of eligibility for quarterly or 5222, 5401–5403, 5411–5417, 5551, 5552,
issue of the Federal Register]. annual reporting—(1) General. If a 5555, 5556, 5671, 5673, 5684, 6011, 6061,
proprietor is using a reporting period 6065, 6091, 6109, 6151, 6301, 6302, 6311,
§ 19.147 [Amended] under paragraph (b)(2) or (b)(3) of this 6313, 6402, 6651, 6656, 6676, 6806, 7342,
■ 5. In § 19.147, paragraph (d) is section but becomes required to use a 7606, 7805; 31 U.S.C. 9301, 9303–9308.
amended by removing the word more frequent reporting period due to ■ 10. [With the addition of the
‘‘monthly’’. changes in the proprietor’s return filing amendatory instructions and proposed
■ 6. Section 19.632 is revised to read as frequency or tax liability, the proprietor regulatory text set forth below, the
follows: must: proposed amendatory instructions and
(i) File the appropriate report form or the proposed regulatory text for part 25
§ 19.632 Submission of reports.
forms beginning with the first quarterly are the same as the amendatory
(a) General. Each proprietor must instructions and the amendatory
or monthly reporting period during
submit reports of its distilled spirits regulatory text set forth in the temporary
which the proprietor became required to
plant operations to TTB in accordance rule on this subject published in the
report in that period; and
with paragraph (b) of this section. The (ii) Concurrently file the appropriate Rules and Regulations section of this
proprietor must submit the original report form or forms covering any issue of the Federal Register].
reports to TTB and must retain a copy previous quarters of the calendar year ■ 11. Section 25.297 is revised to read
for its records. The required report as follows:
(in the case of a proprietor who was
forms are as follows:
previously authorized to submit reports
(1) Report of Production Operations, § 25.297 Report of Operations, Form
form TTB F 5110.40, except that no annually) or any previous months of the
5130.9 or Form 5130.26.
report is required when production calendar quarter (in the case of a
proprietor who was previously (a) Monthly report of operations.
operations are suspended as provided in Except as provided in paragraph (b) or
§ 19.292; authorized to submit reports quarterly).
(2) Required statement. When filing (c) of this section, each brewer must
(2) Report of Storage Operations, form prepare and submit a monthly report of
TTB F 5110.11; the first quarterly or monthly report
form or forms described in paragraph brewery operations on Form 5130.9.
(3) Report of Processing Operations, (b) Quarterly report of operations. A
form TTB F 5110.28; and (c)(1)(i) of this section, a proprietor must
state on the form or forms that the brewer must file quarterly Form 5130.9
(4) Monthly Report of Processing
proprietor is increasing the frequency of or Form 5130.26 (or any successor
(Denaturing) Operations, form TTB F
its reporting and henceforth will submit forms) if both of the following are true:
5110.43.
(b) Reporting periods. Each proprietor quarterly or monthly reports, as (1) The brewer files quarterly tax
must submit the reports specified in applicable. The proprietor must then returns pursuant to § 25.164; and
paragraph (a) of this section to the continue to file the appropriate form or (2) The brewer’s liability for tax on
Director, National Revenue Center, not forms for each subsequent quarter or beer for which taxes have not been paid
later than the 15th day following the last month of that calendar year. does not exceed $50,000 at any time
day of the reporting periods specified in (d) More frequent reporting required during the calendar year.
this paragraph. A proprietor may submit by TTB. The appropriate TTB officer (c) Annual report of operations. A
reports in either paper format or may at any time require a proprietor brewer must file annual Form 5130.9 or
electronically via TTB Pay.gov. The who is reporting quarterly or annually Form 5130.26 (or any successor forms)
required reporting periods are as to report more frequently if there is a if both of the following are true:
follows: jeopardy to the revenue. (1) The brewer files annual tax returns
(1) Monthly reporting periods. Except pursuant to § 25.164; and
in cases where the proprietor must PART 24—WINE (2) The brewer’s liability for tax on
submit reports covering each calendar beer for which taxes have not been paid
■ 7. The authority citation for part 24 does not exceed $50,000 at any time
quarter or calendar year of operations continues to read as follows:
under paragraphs (b)(2) or (b)(3) of this during the calendar year.
Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, (d) Loss of eligibility for quarterly or
section, a proprietor must submit 5008, 5041, 5042, 5044, 5061, 5062, 5121,
reports covering for each month of annual reporting—(1) General. If a
5122–5124, 5173, 5206, 5214, 5215, 5351, brewer using a reporting period under
operations. 5353, 5354, 5356, 5357, 5361, 5362, 5364–
(2) Quarterly reporting periods. A 5373, 5381–5388, 5391, 5392, 5511, 5551, paragraph (b) or (c) of this section
proprietor must submit reports covering 5552, 5661, 5662, 5684, 6065, 6091, 6109, becomes required to use a more frequent
each calendar quarter of operations if 6301, 6302, 6311, 6651, 6676, 7302, 7342, reporting period, the brewer must:
both of the following are true: 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, (i) File the appropriate report form
(i) The proprietor files quarterly tax 9303, 9304, 9306. beginning with the first quarterly or
returns pursuant to § 19.235; and ■ 8. [The proposed amendatory monthly period during which the
mstockstill on DSK3G9T082PROD with PROPOSALS
(ii) The proprietor’s liability for tax on instructions and the proposed brewer became required to use that
spirits for which taxes have not been regulatory text for part 24 are the same period; and
paid does not exceed $50,000 at any as the amendatory instructions and the (ii) Concurrently file the appropriate
time during the calendar year. amendatory regulatory text set forth in report form or forms covering any
(3) Annual reporting periods. A the temporary rule on this subject previous quarters of the calendar year
proprietor must submit reports covering published in the Rules and Regulations (in the case of a brewer who was
for each calendar year of operations if section of this issue of the Federal previously authorized to submit reports
both of the following are true: Register]. annually) or any previous months of the
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![Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules 787
calendar quarter (in the case of a brewer published in the Rules and Regulations Lock and Dam No. 10, mile 615.1, on
who was previously authorized to section of this issue of the Federal the Upper Mississippi River by adding
submit reports quarterly). Register]. a 24-hour notice requirement for
(2) Required statement. When filing openings during the winter season. This
the first quarterly or monthly report PART 28—EXPORTATION OF proposed rule would allow the
described in paragraph (d)(1)(i) of this ALCOHOL drawbridges to remain in the closed-to-
section, a brewer must state on the form ■ 16. The authority citation for part 28 navigation position for extended periods
that it is increasing the frequency of its is revised to read as follows: allowing the owners of the drawbridges
reporting and henceforth will submit to perform preventive maintenance that
quarterly or monthly reports, as Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, is essential to the safe operation of the
applicable. The brewer must then 1202; 26 U.S.C. 5001, 5007, 5008, 5041, 5051,
5054, 5061, 5121, 5122, 5201, 5205, 5207,
drawbridges. This proposed rule would
continue to file the appropriate form for 5232, 5273, 5301, 5313, 5555, 6109, 6302, allow for flexibility in beginning these
each subsequent quarter or month of 7805; 27 U.S.C. 203, 205; 44 U.S.C. 3504(h). special operating schedules each year
that calendar year. based on the arrival of winter weather.
(e) More frequent reporting required ■ 17. [The proposed amendatory
DATES: Comments and related material
by TTB. The appropriate TTB officer instructions and the proposed
must reach the Coast Guard on or before
may at any time require a brewer who regulatory text for part 28 are the same
March 6, 2017.
is filing Form 5130.9 or Form 5130.26 as the amendatory instructions and the
amendatory regulatory text set forth in ADDRESSES: You may submit comments
quarterly or annually to file such reports identified by docket number USCG–
more frequently if there is a jeopardy to the temporary rule on this subject
published in the Rules and Regulations 2016–0561 using Federal eRulemaking
the revenue. Portal at http://www.regulations.gov.
(f) Submission and retention. The section of this issue of the Federal
Register]. See the ‘‘Public Participation and
brewer may submit reports in either Request for Comments’’ portion of the
paper format or electronically via TTB SUPPLEMENTARY INFORMATION section
Pay.gov. The brewer must retain a copy PART 30—GAUGING MANUAL
below for instructions on submitting
of Form 5130.9 or Form 5130.26 (or any ■ 18. The authority citation for part 30 comments.
successor form) in either paper or continues to read as follows:
electronic format as part of the brewery FOR FURTHER INFORMATION CONTACT: If
Authority: 26 U.S.C. 7805. you have questions on this proposed
records.
■ 19. [The proposed amendatory rule, call or email Eric A. Washburn,
PART 26—LIQUORS AND ARTICLES instructions and the proposed Bridge Administrator, Western Rivers,
FROM PUERTO RICO AND THE VIRGIN regulatory text for part 30 are the same Coast Guard; telephone 314–269–2378,
ISLANDS as the amendatory instructions and the email Eric.Washburn@uscg.mil.
amendatory regulatory text set forth in SUPPLEMENTARY INFORMATION:
■ 12. The authority citation for part 26 the temporary rule on this subject
is revised to read as follows: published in the Rules and Regulations I. Table of Abbreviations
Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, section of this issue of the Federal CFR Code of Federal Regulations
5007, 5008, 5010, 5041, 5051, 5061, 5111– Register]. DHS Department of Homeland Security
5114, 5121, 5122–5124, 5131–5132, 5207, E.O. Executive Order
5232, 5271, 5275, 5301, 5314, 5555, 6001, Signed: December 21, 2016.
FR Federal Register
6109, 6301, 6302, 6804, 7101, 7102, 7651, Mary G. Ryan, NPRM Notice of proposed rulemaking
7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. Acting Administrator. SNPRM Supplemental notice of proposed
9301, 9303, 9304, 9306. Approved: December 22, 2016. rulemaking
■ 13. [The proposed amendatory Pub. L. Public Law
Timothy E. Skud,
instructions and the proposed § Section
Deputy Assistant Secretary. (Tax, Trade, and U.S.C. United States Code
regulatory text for part 26 are the same Tariff Policy).
as the amendatory instructions and the [FR Doc. 2016–31415 Filed 1–3–17; 8:45 am] II. Background, Purpose and Legal
amendatory regulatory text set forth in BILLING CODE 4810–31–P
Basis
the temporary rule on this subject For 7 years the Coast Guard has
published in the Rules and Regulations issued temporary deviations requiring
section of this issue of the Federal 24 hours advance notice to open for the
DEPARTMENT OF HOMELAND
Register]. three drawbridges between Lock and
SECURITY
Dam No. 14, mile 493.3, and Lock and
PART 27—IMPORTATION OF
Coast Guard Dam No. 10, mile 615.1, on the Upper
DISTILLED SPIRITS, WINES, AND
Mississippi River. The temporary
BEER
33 CFR Part 117 deviations allowed the bridge owners to
■ 14. The authority citation for part 27 [Docket No. USCG–2016–0561] perform preventive maintenance during
is revised to read as follows: the winter season when there is less
RIN 1625–AA09 impact on navigation. Most recently, the
Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c,
1202; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, temporary deviations for 2015 were
5051, 5054, 5061, 5121, 5122–5124, 5201,
Drawbridge Operation Regulation; published in the Federal Register in
mstockstill on DSK3G9T082PROD with PROPOSALS
5205, 5207, 5232, 5273, 5301, 5313, 5555, Upper Mississippi River, IA December, 2015 as follows: ‘‘Drawbridge
6109, 6302, 7805. AGENCY: Coast Guard, DHS. Operation Regulation; Upper
■ 15. [The proposed amendatory ACTION: Notice of proposed rulemaking. Mississippi River, Clinton, IA’’ and
instructions and the proposed ‘‘Drawbridge Operation Regulation;
regulatory text for part 27 are the same SUMMARY: The Coast Guard proposes to Upper Mississippi River, Dubuque, IA’’
as the amendatory instructions and the change the operating schedule that both published on December 4, 2015 (80
amendatory regulatory text set forth in governs the draws of all bridges between FR 75811); and ‘‘Drawbridge Operation
the temporary rule on this subject Lock and Dam No. 14, mile 493.3, and Regulation; Upper Mississippi River,
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Document Created: 2017-01-04 00:29:15
Document Modified: 2017-01-04 00:29:15
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Notice of proposed rulemaking; cross-reference to temporary rule. | |
| Dates | Comments must be received on or before March 6, 2017. | |
| Contact | For questions concerning this document, contact Ben Birkhill, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau (202-453-2265). | |
| FR Citation | 82 FR 780 | |
| RIN Number | 1513-AC30 | |
| CFR Citation | 27
CFR
18 27 CFR 19 27 CFR 24 27 CFR 25 27 CFR 26 27 CFR 27 27 CFR 28 27 CFR 30 |
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