[Federal Register Volume 61, Number 137 (Tuesday, July 16, 1996)]
[Rules and Regulations]
[Pages 37004-37007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17995]
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[[Page 37005]]
DEPARTMENT OF THE TREASURY
27 CFR Part 53
[T.D. ATF-380]
RIN 1512-AB42
Manufacturers Excise Taxes--Firearms and Ammunition (95R-055P)
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
the Treasury.
ACTION: Temporary rule (Treasury decision).
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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) is amending
the regulations in 27 CFR Part 53 to simplify the regulations relating
to exemption certificates. The regulations are being revised to give
taxpayers the option of using a preprinted document for use as
exemption certificates and vendor(vendee) statements or designing their
own certificates and statements using specified information. The
temporary rule will remain in effect until superseded by final
regulations.
These amendments are part of the Administration's Reinventing
Government effort to reduce burden and streamline requirements.
In the proposed rules section of this Federal Register, ATF is also
issuing a notice of proposed rulemaking inviting comments on the
temporary rule for a 90-day period following the publication date of
this temporary rule.
EFFECTIVE DATE: The temporary regulations are effective July 16, 1996.
ADDRESS: Send written comments to: Chief, Regulations Branch, Bureau of
Alcohol, Tobacco and Firearms, P.O. Box 50221, Washington, DC 20226-
0221.
FOR FURTHER INFORMATION CONTACT: Mary Lou Blake, Regulations Branch,
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Ave., NW,
Washington, DC 20226; (202-927-8210).
SUPPLEMENTARY INFORMATION:
Background
Under current regulations, persons who sell firearms or ammunition
tax-free must obtain certain exemption certificates or statements to
support such sales. Current regulations include suggested forms for
each type of statement and certificate. These certificates and
statements are now available through the Bureau's Distribution Center.
Taxpayers may order these preprinted documents and reproduce them as
needed.
Since the forms are available from ATF, there is no need to
reproduce them in the regulations. Accordingly, this Treasury Decision
removes the text of the forms from the regulations, but retains all
information required for taxpayers who wish to design and use their own
certificates or statements.
This temporary rule also includes technical amendments to the
regulations in 27 CFR Part 53.
Executive Order 12866
It has been determined that this temporary rule is not a
significant regulatory action as defined in E.O. 12866. Therefore, a
regulatory assessment is not required.
Administrative Procedure Act
Because this document merely furnishes the taxpayer with an
optional method of providing exemption certificates or statements and
does not change the existing regulatory requirements, it is found to be
impracticable to issue this Treasury decision with notice and public
procedure under 5 U.S.C. 553(b), or subject to the effective date
limitation in section 553(d).
Regulatory Flexibility Act
It is hereby certified that this regulation will not have a
significant economic impact on a substantial number of small entities
or impose or otherwise cause an increase in the reporting,
recordkeeping or other compliance burdens on a substantial number of
small entities. The factual basis for such certification is that this
revision does not add any new requirement for reporting or
recordkeeping. This revision serves only to clarify and streamline
current regulatory requirements. Pursuant to section 7805(f) of the
Internal Revenue Code, this proposed regulation has been submitted to
the Chief Counsel for Advocacy of the Small Business Administration for
comment on its impact on small business.
Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1980, Public Law
96-511, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR
part 1329, do not apply to this regulation because there are no new
reporting or recordkeeping requirements.
Drafting Information
The author of this document is Mary Lou Blake, Regulations Branch,
Bureau of Alcohol, Tobacco and Firearms.
List of Subjects in 27 CFR Part 53
Administrative practice and procedure, Arms and munitions,
Authority delegations, Exports, Imports, Penalties, Reporting and
recordkeeping requirements.
Authority and Issuance
27 CFR Part 53 is amended to read as follows:
PART 53--MANUFACTURERS EXCISE TAXES--FIREARMS AND AMMUNITION
Paragraph 1. The authority citation for 27 CFR Part 53 continues to
read as follows:
Authority: 26 U.S.C. 4181, 4182, 4216-4219, 4221-4223, 4225,
6001, 6011, 6020, 6021, 6061, 6071, 6081, 6091, 6101-6104, 6109,
6151, 6155, 6161, 6301-6303, 6311, 6402, 6404, 6416.
Par. 2. Section 53.3 is revised to read as follows:
Sec. 53.3 Exemption certificates.
Several sections of the regulations in this part, relating to sales
exempt from manufacturers excise tax, require the manufacturer to
obtain an exemption certificate from the purchaser to substantiate the
exempt character of the sale. Any form of exemption certificate will be
acceptable if it includes all the information required to be contained
in such a certificate by the pertinent sections of the regulations in
this part. These certificates are available as preprinted documents
which may be ordered from the Bureau's Distribution Center (see
Sec. 53.21 for the address of the Distribution Center). The preprinted
certificates may be reproduced as needed.
Par. 3. Section 53.131 is amended by revising the third sentence in
paragraph (a)(5) to read as follows:
Sec. 53.131 Tax-free sales; general rule.
(a) * * *
* * * * *
(5) * * * See paragraph (c) of this section for provisions relating
to evidence required in support of tax-free sales. * * *
* * * * *
Par. 4. Section 53.132 is amended by revising paragraph (c)(2)(i)
and by adding paragraph (c)(2)(iii) to read as follows:
Sec. 53.132 Tax-free sale of article to be used for, or resold for,
further manufacture.
* * * * *
(c) * * *
(2) * * *
(i) Certificate of purchaser. The proof of resale to be received by
the
[[Page 37006]]
manufacturer, as required under section 4221(b)(1) of the Code, may
consist of either a copy of the invoice of the manufacturer's vendee
directed to his purchaser which discloses the certificate of registry
number held by each party or a statement described in this paragraph.
In the case of an invoice of manufacturer's vendee, it must appear from
such invoice (or by statement attached thereto) that the article was in
fact resold for use in further manufacture. In lieu of such an invoice,
proof of resale may consist of a statement, executed and signed by the
manufacturer's vendee which includes the following:
(A) Date statement was executed.
(B) Name and address of manufacturer's vendee (if other than the
person executing statement).
(C) Certificate of registry number held by vendee.
(D) Specify article(s) purchased tax-free, by whom purchased,
certificate of registry number of second purchaser, date of
purchase(s), whether articles were purchased as material in the
manufacture or production of, or as a component part or parts of, an
article or articles taxable under Chapter 32 of the Code.
(E) Statement that person executing statement or manufacturer's
vendee possesses proof of tax-free resale of the article(s) in the form
of purchase orders and sales invoices and identifying the person who
will maintain custody of such proof for 3 years from the date of the
statement and will make such proof available for inspection by ATF
during such 3 year period.
(F) Statement that a previous statement has not been executed in
respect of such certificate of resale and that the person signing the
statement is aware that fraudulent use of the statement may subject the
person signing the statement and all parties making fraudulent use of
the statement to all applicable criminal penalties under the Code.
(G) Name, signature, and title of individual executing statement.
(ii) * * *
(iii) ATF I 5600.37. A preprinted statement, ATF I 5600.37,
Statement of Manufacturer's Vendee, is available from the Bureau's
Distribution Center which, when completed, contains all necessary
information for a properly executed statement. Extra copies of ATF I
5600.37 may be reproduced as needed.
Par. 5. Section 53.133 is amended by revising paragraph (d)(2) and
by adding paragraph (d)(4) to read as follows:
Sec. 53.133 Tax-free sale of article for export, or for resale by the
purchaser to a second purchaser for export.
* * * * *
(d) * * *
* * * * *
(2) In any case where the manufacturer is not the exporter, the
manufacturer must have in its possession a statement from the vendee to
whom the manufacturer sold the article stating the following:
(i) Date statement was executed.
(ii) Name and address of manufacturer's vendee (if other than the
person executing statement).
(iii) Certificate of registry number held by vendee.
(iv) Specify article(s) purchased tax-free, by whom purchased, and
date of purchase.
(v) Statement that article(s) was either exported in due course by
the vendee or was sold to another person who in due course exported the
article(s).
(vi) Name and address of vendee who will maintain possession of the
proof of exportation documents, description of the documents, and
statement that vendee will maintain documents for 3 years and make them
available to ATF for inspection.
(vii) Statement that a previous statement has not been executed in
respect of the articles covered by this statement and that fraudulent
use of this statement may subject person executing statement and all
parties making fraudulent use of statement to all applicable criminal
penalties under the Code.
(viii) Name, signature, title, and address of individual executing
certificate.
(3) * * *
(4) ATF I 5600.36. A preprinted statement, ATF I 5600.36, Statement
of Manufacturer's Vendee, is available from the Bureau's Distribution
Center which, when completed, contains all necessary information for a
properly executed statement. Extra copies of ATF I 5600.36 may be
reproduced as needed.
Par. 6. Section 53.134 is amended by revising paragraph (d)(2)(iii)
and by adding paragraph (d)(2)(iv) to read as follows:
Sec. 53.134 Tax-free sale of articles for use by the purchaser as
supplies for vessels or aircraft.
* * * * *
(d) * * *
(2) * * *
(iii) Acceptable form of exemption certificate. A certificate of
exemption to support tax-free sales under this section must include the
following:
(A) Name of owner, charterer, or authorized agent.
(B) Name of company and vessel.
(C) List article(s) covered by the certificate or beginning and
ending dates during which orders will be placed (not to exceed 12
calendar quarters).
(D) Statement that articles will be used only for fuel supplies,
ships' stores, sea stores, or legitimate equipment on a vessel
belonging to one of the class of vessels to which section 4221 of the
Code applies. Identify class of vessel certificate covers (see
paragraphs (a) and (b) of this section).
(E) If articles are purchased for use on civil aircraft engaged in
foreign trade or trade between the United States and any of its
possessions, state the country in which the aircraft is registered.
(F) Statement that it is understood that if any articles are used
for any purpose other than as stated in the certificate, or are resold
or otherwise disposed of, the person executing the certificate must
notify the manufacturer.
(G) Statement that the certificate shall not be used to purchase
tax-free articles for use as supplies, etc. on pleasure vessels or any
type of aircraft except: (1) Civil aircraft employed in foreign trade
or trade between the United States and any of its possessions; (2)
Aircraft owned by the United States or any foreign country and
constituting a part of the armed forces thereof.
(H) Statement that it is understood that any fraudulent use of the
certificate may subject person executing certificate and all parties
making fraudulent use of the certificate to all applicable criminal
penalties under the Code.
(I) Statement that person executing certificate is prepared to
establish by satisfactory evidence the purpose for which the article(s)
was used.
(J) Date, name, signature, and address of person executing the
certificate.
(iv) ATF I 5600.34. A preprinted certificate, ATF I 5600.34,
Exemption Certificate, is available from the Bureau's Distribution
Center which, when completed, contains all necessary information for a
properly executed certificate. Extra copies of ATF I 5600.34 may be
reproduced as needed.
Par. 7. Section 53.135 is amended by revising paragraph (c)(1) and
by adding paragraph (c)(3) to read as follows:
Sec. 53.135 Tax-free sale of articles to State and local governments
for their exclusive use.
* * * * *
(c) * * *
(1) In the case of a State or local government which is registered
(see Sec. 53.141 for provisions under which a State or local government
may register if it so desires), the provisions of
[[Page 37007]]
paragraph (c) of Sec. 53.131 have application as to the evidence
required in support of tax-free sales. If a State or local government
is not registered, the evidence required in support of a tax-free sale
to the State or local government shall, except as provided in paragraph
(c)(2) of this section, consist of a certificate, executed and signed
by an officer or employee authorized by the State or local government
to execute and sign the certificate. If it is impracticable to furnish
a separate certificate for each order or contract because of frequency
of purchases, a certificate covering all orders between given dates
(such period not to exceed 12 calendar quarters) will be acceptable.
The certificates and proper records of invoices, orders, etc., relative
to tax-free sales must be retained by the manufacturer as provided in
Sec. 53.24(d). A certificate of exemption to support tax-free sales
under this section must contain the following:
(i) Title of official executing certificate, branch of government,
date executed, and statement that official is authorized to execute
certificate.
(ii) List articles covered by the certificate or beginning and
ending dates during which orders will be placed by the purchaser
(period not to exceed 12 calendar quarters).
(iii) Name of manufacturer from which articles purchased.
(iv) Governmental unit purchasing articles.
(v) Statement that is understood that articles purchased under this
certificate of exemption are limited to use exclusively by the
purchasing governmental entity.
(vi) Statement that is understood that any fraudulent use of this
certificate may subject the person executing the certificate and all
parties making fraudulent use of the certificate to all applicable
criminal penalties under the Code.
(vii) Name, address, and signature of person executing the
certificate.
(2) * * *
(3) ATF I 5600.35. A preprinted certificate, ATF I 5600.35,
Exemption Certificate, is available from the Bureau's Distribution
Center which, when completed, contains all necessary information for a
properly executed certificate. Extra copies of ATF I 5600.35 may be
reproduced as needed.
* * * * *
Par. 8. Section 53.179 is amended by revising paragraph (b)(1)(iii)
and by adding paragraph (b)(1)(iv) to read as follows:
Sec. 53.179 Supporting evidence required in case of manufacturers tax
involving exportations, uses, sales, or resales.
* * * * *
(b) * * *
(1) * * *
(iii) Certificate of ultimate vendor. Any certificate executed and
signed by an ultimate vendor as evidence to be retained by the person
who paid the tax as provided in paragraph (a)(4) of this section may be
executed with respect to any one or more overpayments by the person
which arose under section 6416(b)(2) and Sec. 53.178 by reason of
exportations, uses, sales or resales, occurring within any period of
not more than 12 consecutive calendar quarters, the beginning and
ending dates of which are specified in the certificate. A certificate
supporting a claim for credit or refund under this section shall
contain the following:
(A) Name of ultimate vendor if other than person executing the
certificate.
(B) Statement that article(s) was purchased by the ultimate vendor
tax-paid and was thereafter exported, used, sold, or resold.
(C) Description of proof which supports exportation or certificate
as to use executed by ultimate purchaser.
(D) Statement that ultimate vendor retains such proof for 3 years
from the date of the statement and will, upon request, supply such
proof at any time within such 3 year period to the taxpayer to
establish that credit or refund is due in respect of the article.
(E) Statement that to the best knowledge and belief of the person
executing the certificate, no statement in respect of the proof of
exportation or certificate has previously been executed and that the
person executing the certificate understands that any fraudulent use of
the certificate may subject the person executing the certificate or any
other party to all applicable criminal penalties under the Code.
(F) Name, title, address and signature of person executing
certificate and date signed.
(G) Description of all articles covered by the certificate, with
the corresponding vendor's invoice number, date of resale of article,
quantity, whether articles were exported or used and the use made of
article or to be made of article.
(iv) ATF I 5600.33. ATF I 5600.33, Statement of Ultimate Vendor, is
available from the Bureau's Distribution Center which, when completed,
contains all necessary information for a properly executed certificate.
Additional copies may be reproduced as needed.
* * * * *
Signed: May 30, 1996.
Bradley A. Buckles,
Acting Director.
Approved: June 10, 1996.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 96-17995 Filed 7-15-96; 8:45 am]
BILLING CODE 4810-31-P