Rev. Ruling 66-127
Export of Cigars and Cigarettes
Advice has been requested whether cigars and cigarettes may be removed, without payment of tax, or with benefit or drawback of tax, for shipment to possessions of the United States or the various islands under the control of the United States.
Under the provisions of section 5704 of the Internal Revenue Code of 1954, cigars an cigarettes may be removed from a factory or export warehouse, without payment of tax, for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the Internal Revenue laws of the United States. Section 5706 of the Code provides for allowance of drawback of tax paid on cigars and cigarettes when shipped from the United States.
Accordingly, it is
held that cigars and cigarettes may be removed, without payment of tax,
or with drawback of tax, for shipment to a destination outside the United
States. Since the United States, as defined in section 7701 of the Code,
means the 50 States and the District of Columbia, such shipments may be
made to any country, possession, island, etc., as long as such place is
outside of the United States; that is, beyond the 3-mile limit or
Revenue Ruling 65-207, C.B. 1965-2, 538, is hereby superseded.
26 U.S.C. 5704; 27 CFR 290.61