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Industry Circular

Number: 90-5

Date: November 26, 1990

Department of the Treasury

Alcohol, Tobacco, and Firearms Division

Washington, D.C. 20224


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Wine Vinegar Manufacturers, Tobacco Export Warehouse Operators and Others Concerned:

Purpose. This Industry Circular is issued to advise businesses who receive alcohol and tobacco products in bond, of certain provisions of the Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508, 104 Stat., 1388) and its impact on their bond coverage.

Background. Public Law 101-508, 104 Stat., 1388, enacted on November 5, 1990, increased the rate of tax on alcohol and tobacco products effective January 1, 1991. The new excise tax rates are listed below.

Effect on bond coverage. The change in tax rates may increase the liability which must be covered by the operations or withdrawal bonds. Therefore, proprietors receiving tax increased articles in bond, who do not already have a maximum bond, should recompute the coverage needed according to applicable regulations and the new tax amount. If present coverage is inadequate, file a strengthening or superseding bond to avoid incurring tax liability or other penalties. NEW EXCISE TAX RATES EFFECTIVE JAN. 1, 1991 Note: A wine gallon (w.g.) is a standard U.S. volumetric gallon (231 cubic inches).


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* Determination of Price The rate of tax for large cigars has been based on a percentage of the "wholesale price" as defined in 26 U.S.C. section 5702(m). Effective January 1, 1991, the basis will be a percentage of the "price" for which sold by a manufacturer or importer.

Inquiries. If you have any questions, please contact the following ATF office in your area:

Taxpayers in Illinois, Indiana, Kentucky, Michigan, Minnesota, North Dakota, Ohio, South Dakota, Wisconsin, West Virginia:

Bureau of Alcohol, Tobacco and Firearms 550 Main Street, Room 6519 Federal Office Bldg. Cincinnati, OH 45202 (513) 684-3335 FAX (513) 684-3168

Taxpayers in Connecticut, District of Columbia, Delaware, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont:

Bureau of Alcohol, Tobacco and Firearms 841 Chestnut Street Room 380 Philadelphia, PA 19107 (215) 597-2238 FAX (215) 597-7255

Taxpayers in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee and Virginia:

Bureau of Alcohol, Tobacco and Firearms 2600 Century Parkway NE, Suite 305 Atlanta, GA 30345 (404) 679-5080 FAX (404) 679-5099

Taxpayers in Arkansas, Colorado, Iowa, Kansas, Louisiana, Missouri, Nebraska, New Mexico, Oklahoma, Texas, Wyoming: Bureau of Alcohol, Tobacco and Firearms 1114 Commerce Street 7th Floor Dallas, TX 75242 (214) 767-2277 FAX (214) 767-2750 Taxpayers in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington:

Bureau of Alcohol, Tobacco and Firearms 221 Main Street 11th Floor San Francisco, CA 94105 (415) 744-7011 FAX (415) 744-9443

`Stephen Higgins


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