Requirements for Tobacco Export Warehouse Operations

Excise Tax Return (TTB Form 5000.24)

• The tax on tobacco products, cigarette papers and tubes becomes immediately due and payable when proof of export is not furnished within 90 days of the date of removal of the tobacco products, cigarette papers or tubes.

• The taxes shall be paid to TTB, with sufficient information to identify the taxpayer, the nature and purpose of the payment and the articles covered by the payment.  You may use TTB Form 5000.24 for this purpose per 27 CFR 44.67.  Taxes may be filed through Pay.gov (recommended) or submitted by mail to TTB to the address on the form.  Download TTB F 5000.24 [PDF].

Electronic Funds Transfer

• What is an Electronic Funds Transfer (EFT)?
  An EFT is a non-paper, computer-to-computer transfer of funds from a taxpayer's financial institution account to Treasury's account at a Federal Reserve Bank.  Such transfers are initiated through an electronic terminal and not by check, money order, or other paper instrument.

• Payments
  TTB accepts electronic payments through the Federal Reserve Communications System and through Automated Clearing House (ACH) credit transfers.

• Fedwire Transfers
  EFT payments through the Federal Reserve Communications System (using Fedwire) to Treasury's main account at the Federal Reserve Bank of New York are completed on the day they are initiated, generally in a matter of minutes. The Federal Reserve (Fed) guarantees the payment is final as soon as the receiving institution is notified.  The Fed debits the taxpayer’s bank account and credits the account of Treasury for TTB.

• ACH Credit Transfers
  The ACH system is an electronic network for financial transactions in the United States. ACH credit transfers are completed on the following business day.

For general information on making EFT payments to TTB and to find out if you are required to make payments by EFT, please read TTB Procedure 2011-1 or see our EFT Web page.  The information above is provided as a supplement to the Procedure.

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You can file your operational report and/or file your excise tax returns and make payments electronically using Pay.gov.  It’s secure, free, faster, and less costly than using paper forms.

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Monthly Operations Reports must be filed as required by the 27 Code of Federal Regulations.

• Report – Proprietor of Export Warehouse (TTB F 5220.4)
  As required by 27 CFR 44.147 the first reporting period will begin with the effective date of your original permit to the end of the month.  Your report can be filed through Pay.gov (recommended) or submitted to the National Revenue Center (address below); however, you must file the report whether or not any operations or transactions occurred during the reporting period. The reports are due on or before the 20th day following the end of the month covered in the report.  Download TTB F 5220.4 [PDF]
  
  Inventory – Export Warehouse Proprietor (TTB F 5220.3)
  As required by 27 CFR 44.144, an opening inventory shall be made by the export warehouse proprietor at the time you commence business which shall be the effective date of the permit issued upon original qualification under this part.  The inventory must be prepared in duplicate by the proprietor.  The original inventory report can be filed through Pay.gov (recommended) or submitted to the National Revenue Center (address below) and the duplicate must be retained by the proprietor. Download TTB F 5220.3 [PDF]
  
  Where to file using a Paper Form: 
  National Revenue Center
  550 Main Street, Suite 8002
  Cincinnati, OH 45202

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27 CFR 44.142(a) describes the records to be kept regarding the receipt and removal of tobacco products, cigarette papers and tubes and processed tobacco from the export warehouse premises.  Additionally, 27 CFR 44.142(b) describes the requirements for filing and maintaining Taxable Articles Without Payment of Tax form TTB F 5200.14, for the receipt and removal of those tobacco products, cigarette papers and tubes, and processed tobacco.

• Where to File
  Alcohol and Tobacco Tax and Trade Bureau
  Excise Tax
  P.O. Box 790353
  St. Louis, MO 63179-0353

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Any change in the name, address, ownership, management or control of the business must be reported to TTB without delay. If you filed your original application on paper, and haven't requested that your data be migrated to our Permits Online system, you should file these amendments on the TTB forms described in the applicable regulations. If you filed your original application through Permits Online, you should also electronically file your amendments in Permits Online. For more information see the regulations at 27 CFR 44.101-112.

• Change in Location (Premises)
  Select this amendment if you will be moving your business operations to another location within the same state.  If moving to another state you will need to file an original application.  You will need to submit a new diagram and file an amended Special Tax Return within 30 days. See CFR 27 46.126.

• Change in Mailing Address
  Select this amendment if there has been a change to where you will receive mail.

• Change in Premises Address – USPS
  Select this amendment if your address was changed by the United States Postal Service but no physical move has taken place.

• Add/Remove Signing Authority
  Select this amendment if you will be making any changes to the existing signing authority on file.  You will be required to attach the appropriate documentation showing where the authorization is granted.

• Add/Remove Power of Attorney
  Select this amendment if you are adding or removing individuals from outside your company with the power to sign and/or act on behalf of the company. When adding a Power of Attorney you are required to upload into Permits Online Power of Attorney form TTB F 5000.8.

• Change in Business Name
  Select this amendment if there has been a change to your legal business entity’s name.  You will need to attach a copy of your amended Articles showing the name change.

• Add/Remove Trade Name
  Proof of trade name registration, if required by the state or the county, must be uploaded and attached to your application.  If the state or county does not require trade name registration, a signed and dated statement of this fact should be submitted.

• Change in Control
  A change in actual or legal control occurs when there are changes in stock ownership, LLC membership ownership, or possibly major changes in the corporate officers or directors of a corporation.  In such situations, the legal business entity which operated the business in the past continues to operate the subject business.  In other words, the same legal entity remains in existence, which continues to operate the business in question.
  
  If adding a new person, an Owner Officer Information Application must be completed through Permits Online. 

• Change in Officer, Director, Member, or Stockholder/Interest
  Select this amendment when there is a change in the officers, directors, members and managers, as well as any stockholders/interest holders who hold 10 percent or more.  An Owner Officer Information Application must be completed for each new person through Permits Online.

• Add/Remove Variance or Alternate Method
  Selecting this amendment is a request to vary from the regulations.  You will need a letterhead notice stating the regulations you wish to vary from along with a reason why this variance is needed. 

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Any change in the name, address, ownership, management or control of the business must be reported to TTB without delay.

Change in Location-within same State (27 CFR 44.108)

• Application for Amended Permit form TTB F 5200.16, (Surrender current permit)
• New diagram of export warehouse premises
• File an amended Special Tax Return within 30 days (27 CFR 46.126)

Change in Location to another State (27 CFR 44.108)

• You must file an original application as a new permit number will be issued. (Surrender current permit) 
• New diagram of export warehouse premises
• File an amended Special Tax Return within 30 days (27 CFR 46.126)
• File a new bond, as a new permit number will be issued.
• Foreign corporation/LLC registration in new State if entity is incorporated and/or organized in a State other than where business will be conducted

Change in Mailing Address (only) by action of local authorities (27 CFR 44.109)

• Application for Amended Permit form TTB F 5200.16, (Surrender current permit)
• File an amended Special Tax Return

Change in Export Warehouse Premises, making diagram inaccurate (27 CFR 44.111)

• Application for Amended Permit form TTB F 5200.16 (Surrender current permit)
• Diagram of export warehouse premises, if required by 27 CFR 44.88.

Add/Delete Signing Authority. (27 CFR 44.87)

• Sole owner:  Power of Attorney form TTB F 5000.8
• Partnership:  Power of Attorney form TTB F 5000.8 for each partner and any designee
• Corporation:  Authorized in corporate documents, resolution or Signing Authority form TTB F 5100.1; Power of Attorney form TTB F 5000.8 for any designee that is not an employee.  You will be required to attach the appropriate documentation showing where the authorization is granted.
• LLC:  Authorized in organizational documents, resolution or Signing Authority form TTB F 5100.1; Power of Attorney form TTB F 5000.8 for any designee

Change in Individual Name (27 CFR 44.101)

• Application for Amended Permit form TTB F 5200.16 filed within 30 days of change (Surrender current permit)
• File an amended Special Tax Return (27 CFR 46.126)

Addition/Deletion of Trade Name/Operating Name (27 CFR 44.102)

• Application for Amended Permit form TTB F 5200.16 filed within 30 days of change (Surrender current permit)
• If addition of trade name, copy of registration issued by the State or local authority
• If not required, a statement to that effect

Change of Corporate Name (27 CFR 44.103)

• Application for Amended Permit form TTB F 5200.16 filed within 30 days of change (surrender current permit)
• Amended Articles of Incorporation or Amended Articles of Organization
• File an amended Special Tax Return (27 CFR 46.126)

Change of Corporate Officers, Directors or Stockholders of a Corporation (27 CFR 44.106-107)

• Within 30 days of action—notify TTB in writing setting out the current list of officers, directors and stockholders;
• Identify each officer and director by name and title;
• Identify each stockholder by name, and number of shares held;
• Identify the number of shares issued and the number of shares authorized;
• File Personnel Questionnaire TTB F 5000.9 for each officer, director, or more than 10% stockholder;

Change of Members/Managers/Ownership Interest of a Limited Liability Company (LLC) (27 CFR 44.106-107)

• Within 30 days of action—notify TTB in writing setting out the current list of members, managers and interest holders of the LLC;
• Identify each member and/or manager by name and title;
• Identify each interest holder by name, % of ownership;
• File Personnel Questionnaire form TTB F 5000.9 for each member and/or manager, and more than 10% interest holder;

Alternate Method or Procedure (27 CFR 44.72)

• Written notice identifying the regulation you wish to vary from, along with specific description and reason the alternate method or procedure is needed.

Fiduciary Successor, (27 CFR 44.104)

• Taking over business as a continuing operation, the fiduciary shall before commencing operations make application for permit and file a bond (original qualification).
• If the fiduciary intends to liquidate the business, the fiduciary must notify TTB of its intent to liquidate the business and file a Change in Bond (Consent of Surety) of the predecessor’s bond.

Transfer of Ownership, (27 CFR 44.105)

• The current proprietor shall give notice of transfer, and the proposed successor shall make an application for permit and file a bond, as required, in ample time for examination and approval thereof before the desired date of such change.
• The predecessor shall make a closing inventory, (27 CFR 44.146) and closing report, (27 CFR 44.151) and surrender his permit along with the closing inventory and closing report.

Partnership Changes (27 CFR 44.105)

• Change in member of Partnership: Same as Original Qualification (includes husband and wife partners)
• Limited Partnership: Change of General Partner – Same as Original Qualification

Change of Actual or Legal Control (27 CFR 44.107)

• A change in actual or legal control occurs when there are changes in stock ownership, LLC interest holding, or possibly major changes in the corporate officers or directors of a corporation.  In such situations, the legal business entity which operated the business in the past continues to operate the subject business.  In other words, the same legal entity remains in existence which continues to operate the business in question.
• Within 30 days after change occurs, file Application For Permit Under 26 U.S.C. Chapter 52 form TTB F 5200.3
• Updated Signing Authority form TTB F 5100.1  or Power of Attorney form TTB F 5000.8,  if appropriate.

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We’ve provided easy access, for you to read Chapter I, of Title 27 Code of Federal Regulations and public laws relating to the tobacco industry.

Tobacco Authority Under Title 26, Internal Revenue Code

Chapter 52 -- Tobacco Products and Cigarette Papers and Tubes

Regulations

Part 40 - Manufacture of tobacco products and cigarette papers and tubes
Part 41 - Importation of tobacco products and cigarette papers and tubes
Part 44 - Exportation of tobacco products and cigarette papers and tubes, without payment of tax, or with drawback of tax
Part 45 - Removal of tobacco products and cigarette papers and tubes, without payment of tax, for use of the United States
Part 46 - Miscellaneous regulations relating to tobacco products and cigarette papers and tubes

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Every export warehouse proprietor must pay Special (Occupational) Tax In accordance with 27 CFR 44.31. You may register and pay electronically with Permits Online.

• Who is required to pay Special Tax?
  If you are a proprietor of an export warehouse, you are liable for special (occupational) tax from the date you begin operations. For special (occupational) tax purposes the term operations includes STORAGE and/or DISTRIBUTION.

• When Is the SOT due?
  The special (occupational) tax is due prior to commencement of business operations and on July 1 of each year thereafter. The tax year runs from July 1st each year to the next June 30th. For example: the tax for the period July 1, 2009 through June 30, 2010 was due by July 1, 2009. The tax may be prorated the first year if operations are commenced after the month of July. Special Tax cannot be paid monthly. The full tax is due at the beginning of each tax period.

• How much is the SOT?
  The special (occupational) tax imposed on an export warehouse proprietor is $1,000 per year. However, if the business had gross receipts of less than $500,000 in the previous income tax year, the rate is $500 per year.
  • All of the taxpayer's gross sales receipts must be taken into account, not just those derived from the business subject to special tax. For instance, sales receipts from other businesses such as a retail outlet, selling either tobacco or other property or services must be included.
  • If you are a member of a controlled group as defined in section 5061(e) (3) of the Internal Revenue Code, you are not eligible for this reduced rate unless the total gross receipts for the entire group are less than $500,000. Please note, the annual renewal form will always be prepared at the non-reduced rate. It will be your responsibility each tax year to determine whether or not you are eligible for the reduced rate.
    
    
• Do I owe tax for each location?
  If the export warehouse proprietor permit you received from TTB authorizes you to conduct operations at more than one location, or if you have more than one export warehouse proprietor permit and you are in fact conducting operations at more than one location, special tax is due for each location.

• Will I receive an annual notice?
  No. It is your responsibility to file the Special Tax Return, along with payment by July 1st of each year. Penalties and interest are applicable to any return not filed and paid on time.  You may file your SOT return with the National Revenue Center (address below). Download Special Tax Registration and Return – Tobacco form TTB F 5630.5t [PDF].
  
  Where to file:
  SOT TAX
  Alcohol and Tobacco Tax and Trade Bureau
  550 Main Street, Suite 8002
  Cincinnati, OH 45202-5215

• Is my tax stamp transferable?
  A special tax stamp is NOT transferable. Therefore, if there is a change in ownership of your business or business structure, such as a sole owner incorporating, or going into a partnership, the new owner is required to file a special tax registration and return and pay the tax from the month the change occurs through the next June 30th.

• If I change my operations, whom should I notify?
  The information provided on TTB F 5630.5t is for special tax purposes only. Any changes that affect your permit should also be reported to the Alcohol and Tobacco Tax and Trade Bureau (TTB), National Revenue Center, 550 Main St., Suite 8002, Cincinnati, OH 45202-5215.

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The only law which TTB enforces that relates to the advertising of tobacco products and cigarette papers and tubes is a prohibition against lottery features and indecent, immoral pictures, print or representation attached to such packages.

For general advertising information related to tobacco products, the Federal Trade Commission may be helpful. The Federal Trade Commission enforces a variety of Federal antitrust and consumer protection laws.

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There are additional responsibilities and requirements that you may have to meet including state laws.

• TTB personnel have the right of entry into your premises.

• All taxpaid products on the bonded premises must be clearly marked and segregated.  Export warehouse premises may only be used for the storage of tobacco products and cigarette paper and tubes, upon with the tax has not been paid.

• Please ensure you are in compliance with your state and local authorities before commencing operations (including building/use permits and zoning requirements).

If you have any questions, please contact the National Revenue Center at 1-877-882-3277 or at National Revenue Center.

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