USE OF "RECONSTITUTED TOBACCO"
AS A WRAPPER FOR ROLLS OF TOBACCO
Manufacturers of tobacco products:
Purpose. This circular is to advise you of the provisions of a revenue
procedure which will be published in the Internal Revenue Bulletin in the near
future and which will supersede Revenue Procedure 64-5, I. R. B. 1964-3, 27.
Background. Because the definitions in section 5702 of the Internal Revenue
Code of 1954 distinguish cigarettes from cigars in terms of the kind of
wrapper used, i.e., paper or any substance other than tobacco, or tobacco,
the revenue procedure will provide that where a manufacturer of tobacco
products intends to use "reconstituted tobacco" (also referred to as
"homogenized leaf tobacco" and "tobacco sheet") as a wrapper for rolls of
tobacco he should, prior to marketing the product, secure an official determination from the Director, Alcohol and Tobacco Tax Division, of the rate of
tax applicable to the tobacco product on which the material will be used.
Submission of samples. An adequate sample of the "reconstituted tobacco,"
consisting of a strip 20 to 30 feet in length, and the name of the company
producing the "reconstituted tobacco" should be submitted to the Director,
Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington, D. C.
In addition, where the "reconstituted tobacco" is to be used as a wrapper
for rolls of tobacco which when finished will weigh not more than three
pounds per thousand, a sample of the finished product and either the package
or the proposed design of the package showing the mark and notice required
by the regulations in 26 CFR Part 270 should also be submitted to the
Director, Alcohol and Tobacco Tax Division.
Inquiries. Inquiries regarding this 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