Disposition of Packages and Labels
Required by Previous Regulations
Manufacturers of tobacco,
cigars, and cigarettes:
1. The purpose of this industry circular is to provide for the
disposition of existing stocks of packages or labels used under previous regulations in connection with removals of tobacco products,
without payment of tax, for use of the United States.
2, Title 26 (1954), Code of Federal Regulations, Part 295,
governing the removal of tobacco products, and cigarette papers and
tubes, without the payment of tax, for use of the United States, which
became effective May 21, 1955, and superseded Subpart P, 26 CFR (1939)
Part 140 (Regulations 8), provides that tobacco products shall, before removal, without payment of tax, for use of the United States,
be put up by the manufacturer thereof in packages similar to those
in which like products are removed for taxable purposes. In addition,
every package shall bear a label or notice containing in legible
letters the words "Tax-exempt. For Use of U. S, Not to be sold,"
Such label or notice shall be readily distinguishable from a tax
stamp, or a label, notice, or stamp required to evidence tax. Every
package of tobacco products shall, before removal under Part 295 of
the Code of Federal Regulations, identify the manufacturer of such
tobacco products by having legibly imprinted thereon, or on the label
or notice required by section 295.53, either the name and location of
the manufacturer, or his permit number.
3. Since the caution notice and factory brand, also the tax-exempt
labels or stickers, required by previous regulations on packages of
nontaxpaid tobacco products removed for use of the United States, provide essential protection to the revenue, the continued use of such
present stocks of packages, labels, and stickers in removing tobacco
products for use of the United States is hereby authorized.
4. Inquiries in regard to this industry circular should refer
to the number thereof and should be directed to the Assistant Regional
Commissioner, Alcohol and Tobacco Tax.
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division