TAX-EXEMPT STATEMENT TO BE SHOWN ON PACKAGES OF
CIGARS AND CIGARETTES REMOVED FOR EXPORT
Manufacturers of Tobacco Products,
Proprietors of Export Warehouses
and Others Concerned:
Purpose. The purpose of this circular is to advise the industry
members that an ATF Ruling will be published in an early issue, of the
ATF Bulletin to provide guidance to manufacturers of tobacco products
for marking packages of tax-exempt cigars and cigarettes removed for
export without payment of tax. Please examine your supply of tax-exempt
labels and packaging materials for compliance with the ruling. The
ruling will read substantially as follows:
Questions have been raised whether packages of tax-exempt cigars
and cigarettes removed for export may be placed inside packages made
of nontransparent plastic material and whether the markings denoting
tax-exempt status as now shown on packages of cigars and cigarettes
for export are adequate within the intent of 26 CFR 290.185.
26 U.S.C. 5723(b) provides that every package of tobacco products
or cigarette papers or tubes shall, before removal from the tobacco
factory, bear the marks, labels, notices, and stamps, if any, that the
Secretary or his delegate by regulation prescribes.
26 CFR 290.185 provides that every package of cigars or cigarettes
shall, before removal from the factory for export without payment of
tax, have adequately imprinted thereon, or on a label securely affixed
thereto, the words "Tax-exempt. For use outside U.S.", or the words
"U.S. Tax-exempt. For use outside U.S.", except where a stamp, sticker,
or notice, required by a foreign country or a possession of the United
States, which identifies such country or possession, is so imprinted
It is the intent of law and regulations that the marks, labels,
notices, etc., on packages of tax-exempt cigars and cigarettes for use
outside the United States be visible and of such size as to be readily
discernible to the purchaser and distinct from all other markings on
the package and that such markings, etc., be readily distinguishable
from packages of taxpaid cigars and cigarettes for domestic consumption.
Held, packages of cigars or cigarettes for export will be
considered adequately marked if the tax-exempt statement printed on
the package, or on a label attached thereto, is visible from outside
the package, is printed in type equivalent to 6-point News Gothic
Bold caps on a contrasting background, and is separate and apart
from other descriptive statements.
Held further, if for any reason a
package will not permit the above-described printing and spacing,
such package shall be submitted to the Director, Alcohol, Tobacco
and Firearms for a determination as to required markings.
Revenue Ruling 66-134, C.B. 1966-1, 350 (Internal Revenue), is
NOTE: It is recognized that time will be required to make
necessary changes in packaging materials to conform with the
requirements of ATF Ruling 74-23. Therefore, a period of one year
from date of this publication is permitted for use-up of the
inventory of stickers, labels, and packaging materials on hand.
Inquiries. Inquiries regarding this circular should refer to
its number and be addressed to your
Tobacco and Firearms.
Rex D. Davis