SHIPMENTS TO REPLACE TOBACCO PRODUCTS
LOST, DAMAGED, OR DESTROYED IN TRANSIT FOR EXPORTATION
Manufacturers of tobacco products:
Purpose. This industry circular is to advise you regarding the preparation and
distribution of the notice of removal, Form 2149, covering shipments of tax-exempt
tobacco products replacing products previously removed and lost, damaged, or destroyed
in transit for exportation.
Background. The regulations in 26 CFR Part 290 provide for the preparation and
distribution of the several copies of the notice of removal, Form 2149, and for the
filing of two copies of the notice of removal with the collector of customs at the
port of exportation.
Where tobacco products are lost, damaged, or destroyed in transit for exportation
(either the total shipment or a part of the shipment) and you make a replacement shipment, the two sets of Form 2149 will, in the aggregate, indicate the removal for exportation of more products than are entered on the export declaration and ship's manifest.
One the collector of customs certifies to only the actual quantity exported, the
additional Form 2149 covering a replacement shipment often creates confusion and
additional work in his office. Therefore, the following procedure should be used when
replacement shipments are made.
Preparation and Disposition of Forms 2149 Covering Replacement Shipments.
When tax-exempt tobacco products are removed from the factory to replace products
previously removed and lost, damaged, or destroyed in transit for exportation, the
notice of removal, Form 2149, should be prepared in accordance with the regulations in
26 CFR Part 290. This Form 2149 should contain a statement to the effect that the
products listed thereon were removed from the factory to replace products previously
removed under Form 2149, serial number _____, which were lost, damaged, or destroyed, as
applicable. It would be helpful if the Form 2149 also contained an explanation of the
loss, damage, or destruction. Only two copies of the form need be prepared, one copy
to be retained by you as a part of your records and one copy to be forwarded to your
assistant regional commissioner (alcohol and tobacco tax).
Accounting for lost, Damaged, or Destroyed Tobacco Products. You are reminded that
lost, damaged, or destroyed tobacco products must be accounted for by taxpayment, by
return to the factory, or by the filing of a claim for remission of the tax liability
with your assistant regional commissioner (alcohol and tobacco tax).
Inquiries. Inquiries in regard to this industry circular should refer to its
number and be addressed to the office of your assistant regional commissioner
(alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division