MARK ON TRANSFERRED CIGAR AND CIGARETTE PACKAGES
Manufacturers of tobacco products:
Background. Manufacturers of tobacco products who operate more than
one factory occasionally need to interchange between factories packaging
materials for particular brands of cigars or cigarettes. They also
sometimes need to transfer cigars or cigarettes in bond and remove them
from a factory other than the factory at which packaged. When the need
to transfer packaging materials or packaged products arises unexpectedly
and the packages do not identify the factory from which they will
subsequently be removed, the manufacturer usually can not fully justify
a request for an alternate method or procedure since he can not show
good cause to vary from the regulatory provisions.
Regulatory Provisions. The applicable regulations (26 CFR 270.212,
290.184, and 295.42) provide with respect to marking packages of cigars
and cigarettes the basic requirement to identify the factory from which
removed. However, these regulations are flexible in that they express
an alternative which allows use of the name of the manufacturer and
identification of the factory at which cigars and cigarettes are
packaged, rather than the factory from which removed. This factory
identification can be by any means approved by the Director, Alcohol
and Tobacco Tax Division.
Recommended Action. Generally, manufacturers can not predict when
need to transfer packaging materials or packaged products will occur.
However, when packages are designed to identify the factory at which the
products are packaged (under the alternate marking provision) such
transfers can be freely made between factories. This factory identification
could be by code or symbol imprinted or impressed at the time of packaging
or by some other means. The package would show in the mark only the name
of the manufacturer. If the manufacturer wishes, the package could also
show the location of the company's principal office or similar information.
Identification of the factory of packaging could well be placed in or on the
package by any of the following means:
1. Preprinted, or imprinted at the time of packaging, on the
closure tab for cigarette soft packs
2. Imprinted on cigar boxes at the time a date code or other
information is entered.
3. Impressed at the time of packaging on the exterior of cardboard
or plastic cigar or cigarette packages.
4. Impressed on the inner foil.
One of the preceding means could possibly be used in your present operation
without introducing an additional step in the packaging process. Obviously,
these examples are not exhaustive. You may find a simpler or more effective
way to apply the factory identification during your packaging operation.
If you operate more than one factory and are not already using the alternate
marking provision we strongly suggest that you take action by planning
packaging materials along the lines discussed in this circular. By using the
alternate marking provisions you may avoid unnecessary expense because you
will be able to transfer products in bond or to freely interchange packaging
materials between your factories as the need arises, without delay and
without the need to justify a request for a special authorization.
Inquiries. Inquiries regarding this circular should be addressed to
the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service,
Washington, `D. C. 20224, Attention: Tobacco Tax Branch.
Harold A. Serr
Director, Alcohol and Tobacco Tax Division