February 2001 Newsletter 1

Offer-in- Compromise 
By Jeannette Compton (202) 927-8130

On December 22, 2000, the Director, Industry Operations, St. Paul Field Division, accepted an Offer-in-Compromise of $110,000 from Miller Brewing Company, Milwaukee, Wisconsin. Miller failed to accurately record production and removal of beer, as evidenced by recurring inventory overages and shortages; and failed to provide sufficient evidence of exportation.

New Tobacco Form 
By Bob Ruhf (202) 453-2265

The Bureau of Alcohol, Tobacco and Firearms (ATF) has issued ATF Form 5200.14, Notice of Removal of Tobacco Products, Cigarette Papers, or Cigarette Tubes. It replaces ATF Form 2149/50 (5200.14).

Do not use any previous editions of ATF Form 2149/50 (5200.14) for future transactions because ATF Form 5200.14 has significant changes. The significant changes are as follows:

• Roll-your own tobacco has been added. 
   
• Items that refer to the tax or the tax rate on large cigars have been changed. The tax on large cigars is determined on the sale price*, not the wholesale price.
  [* Sale price is defined as the price for which large cigars are sold by the manufacturer or importer as determined in accordance with 27 CFR 270.22 or 27 CFR 275.39 and used for the computation of tax. Refer to 27 CFR 270.22 for further information on determining the sale price for large cigars.]
   
• In addition to the above, a column in item 12 has changed. Item 12 describes the articles for export. Instead of stating the amount (number or pounds and ounces) in each container, you now state the unit type of the container (for example, cartons or cases).
   
• The address of the ATF office to which copies of the form are sent has been changed.
   
• Item 10 has been changed. It lists the reasons for the notice. You can now select a box for returns to export warehouse or factory. In addition, there are separate boxes for a transfer to an export warehouse or to a factory.

If you have questions about this form, ask the Tobacco Unit, National Revenue Center, 550 Main Street, Cincinnati, OH 45202-3222, 1-800-398-2282 or 513-684-7151. You may also refer to ATF Industry Circular 2000-2, Exportation of Distilled Spirits, Wine, Beer and Tobacco Products.

Labeling Policy Change
By Nicholas Colucci (202) 927-8140

As you may be aware, 26 U.S.C. Section 5662 prohibits any person from representing any still wine as an effervescent wine, or as a substitute for an effervescent wine. Therefore, in order to provide you with more precise guidance on this subject, the Alcohol Labeling and Formulation Division (ALFD) has determined that the following terms may not appear on still wines:

Petillant; Spumante; Perlant; Frizzante; Spritz/Spritzy; Bubble/Bubbly; Sparkle/Sparkling; Tingle/Tingly; Cremant; Reciotto; and Crackling. (Note: This list is not all inclusive.)

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