April 22, 2010
Greetings! We hope you are having an inspirational and satisfying week! This edition includes the signing of a Memorandum of Understanding with the Italian Republic, a new State and local government resource on our Web site, and a settlement with a tobacco manufacturer.
In the TTB Newsletter, we compile the top TTB news of the week and other helpful information about the Bureau and the Federal alcohol and tobacco laws and regulations we enforce. Please send any questions and/or comments to Executive Liaison for Industry Matters (industryliaison@ttb.gov) and/or State Liaison (stateliaison@ttb.gov). |
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TTB SIGNS MOU WITH THE ITALIAN REPUBLIC
TTB Administrator, John Manfreda, signed a Memorandum of Understanding (MOU) with General C.A. Cosimo D'Arrigo of the Guardia Di Finanza of Italy. The intent of the MOU is to establish a consistent channel for cooperation regarding the exchange of information for the purpose of combating the smuggling of alcohol and tobacco products.
His Excellency Giulio Terzi di Sant'Agata, Italian Ambassador to the United States praised the MOU as "a commitment by our country to continue to be a reliable partner of the U.S. administration." Administrator Manfreda stated that the MOU was "the result of hard work over a long period which has led to better cooperation, communication, and efficiency."
Click here to read the MOU.
NEW WEBPAGE PROVIDES STATE AND LOCAL GOVERNMENT RESOURCE
At bottom left hand corner of the homepage of our Web site TTB.gov, we have added a new section under "Information by Audience" that provides links to information and services relating to State and local governments as well as links to several TTB resources. State agencies and a variety of local agencies regulate businesses, professions and specific business activities. Some regulations and licensing requirements are established by State law, but administered at the local level. Please click on the link below for complete information.
TTB AND ATF REACH SETTLEMENT WITH TOBACCO PRODUCTS MANUFACTURER
TTB and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have reached an agreement with Ohserase Manufacturing located on the Saint Regis Mohawk Reservation in New York to come into compliance with Federal law. The settlement resolves issues related to Ohserase’s manufacture of tobacco products on an Indian reservation without the payment of Federal excise tax, manufacturing without a permit or bond, and the distribution of cigarettes in violation of the Contraband Cigarette Trafficking Act (CCTA).
Ohserase Manufacturing is a member of the Saint Regis Mohawk Tribe and manufactures tobacco products on its reservation in New York. In 2002, ATF began an investigation into the manufacture of cigarettes on the Saint Regis Reservation. The settlement marks the culmination of efforts by TTB, ATF, Ohserase Manufacturing and the United States Attorney of the Northern District of New York to bring Ohserase into compliance with Federal laws and regulations.
Ohserase Manufacturing asserted that it was exempt from Federal regulation of the manufacture of its cigarettes based upon a claim of tribal sovereignty. Under the terms of the agreement, Ohserase agrees to the administrative forfeiture of $1.75 million.
Ohserase will pay taxes on all cigarettes it manufacturers, and keep all required records under the Internal Revenue Code (IRC) and the CCTA. Ohserase's agreement to comply with the applicable provisions of the IRC and the CCTA in the future, and its settlement of the past alleged violations, resolved Ohserase’s compliance issues and resulted in the issuance of a TTB permit authorizing Ohserase to operate as a tobacco products manufacturer.
Mary Ryan, Assistant Administrator for Field Operations (TTB), stated, "I believe this agreement represents a tremendous achievement in the administration of Federal tobacco tax laws and a considerable step forward in TTB's relationship with manufacturers on Native American Reservations. We hope that the agreement will encourage other similarly-situated cigarette manufacturers to willingly come into compliance with the tobacco tax laws."