MARK ON PACKAGES OF TOBACCO PRODUCTS
Manufacturers and importers
of tobacco products:
Purpose. Because some packages of tobacco products, particularly
cigars, do not bear the mark required by regulations, possibly as the
result of a misunderstanding of the marking requirement, this industry
circular furnishes additional advice in respect to the mark required to
be shown on all packages of tobacco products.
Background. Industry Circular No. 59-40, dated June 16, 1959,
advised that each package of tobacco products removed subject to tax
after June 24, 1959, must bear the mark required by 26 CFR 296.120, re-
gardless of the quantity of such product contained in the package. Also,
the circular advised that tubes of cellophane, glass, or metal, or similar
containers, which hold only one cigar, are not packages within the meaning
of the definition of a package where they are sold or delivered from a
proper package bearing the mark as required by Section 296.120.
Regulatory Provisions. A package, as defined in 26 CFR Part 296 and
in the proposed regulations in 26 CFR Part 270 (published in the Federal
Register on June 7, 1961), is the container in which tobacco products are
put up by the manufacturer or importer and offered for sale or delivery
to the consumer. Each such package of tobacco products must bear the
mark as required by Section 296.120. For clarity, we would like to empha-
size that the provisions of paragraph (b) of Section 270.144 relating to
subdivision parcels have been superseded by the provisions in Section
296.120. Subdivision parcels were long recognized under the stamp system
as the practical means of avoiding the cumbersome stamping of many small
packages. However, with the elimination of stamps there was no further
need for the continuance of provisions for subdivision parcels.
Procedures. Under the regulations all tobacco products removed
subject to tax must be put up by the manufacturer or importer in packages
which shall be of such construction as will securely contain the products
therein and maintain the mark as required by the regulations.
We would like to remind you that all packages of cigars or cigarettes
consisting of two, three, four, five, or more cigars or cigarettes (even
if the packages are only of cellophane or similar material), must bear the
mark required by Section 296.120. Manufacturers presently using such
packages which do not bear the required mark should advise their assistant
regional commissioner as to the quantity of such stock on hand and the
approximate time for its use, and request authorization to use such existing
supplies.
Inquiries. Inquiries in regard to this industry circular should refer
to its number and be addressed to the office of your assistant regional
commissioner (alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division |