ENTRIES IN RECORDS, REPORTS, AND INVENTORIES
OF TOBACCO IN PROCESS AND MANUFACTURED TOBACCO
Manufacturers of tobacco:
Purpose. The purpose of this industry circular is to provide manufacturers of tobacco more detailed instructions relative to accounting for tobacco
in process and manufactured tobacco in their records, Form 2141, reports,
Form 2134, and inventories, Form 2130.
Background. You were advised in Industry Circular No. 56-40, dated
November 20, 1956, of the manner of reporting tobacco materials in your
inventories, Form 2130, and reports, Form 2134, beginning January 1, 1957.
The above-mentioned circular provided for the showing of tobacco materials
in the inventories and reports under only the two classifications, namely,
unstemmed tobacco and other tobacco materials. In this connection, there
appears to be some misunderstanding as to the proper accounting for tobacco
in process, and when tobacco in process should be regarded as manufactured
tobacco and should be so reported by manufacturers in their records, Form
2141, reports, Form 2134, and inventories, Form 2130.
Records, reports, and inventories. Tobacco in the process of manufacture should be shown in your records, Form 2141, reports, Form 2134, and
inventories, Form 2130, as tobacco materials, under the classification of
"Other tobacco materials." For the purpose of making entries in such records,
reports, and inventories, manufacturers of tobacco should regard all tobacco
(other than plug or twist) as tobacco materials until it is packaged for removal, furnished to employees for personal consumption or use, or removed
for sale, consumption, or use.
Effective date. Manufacturers of tobacco who have been reporting tobacco
in a manner other than as provided in the preceding paragraph should follow
the instructions therein upon receipt of a copy of this circular.
Inquiries. Inquiries in regard to this industry circular should refer to
the number thereof and should be directed to the appropriate assistant regional
commissioner (alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division