Records of Tobacco Materials by
Manufacturers of Tobacco Products
Manufacturers of tobacco, cigars, and cigarettes:
1. The purpose of this industry circular is to furnish instructions and establish a uniform method for the keeping of factory
revenue records, Forms 73-Part 1, 73-Part 2, and 74, with respect to
tobacco materials received, shipped, lost, and destroyed, on and
after January 1, 1956. These instructions are necessary because
Forms 73-Part l, 73-Part 2, and 74, do not provide columns for recording all such entries of each specific kind of tobacco materials
as defined in regulations, 26 CFR (1954) Parts 270 and 275.
2. Forms 73-Part 1 and 73-Part 2. Black Fat tobacco received,
shipped, lost, and destroyed shall be included in the columns relating
to unstemmed leaf tobacco and entered in the appropriate columns (debit
or credit) so designated. Perique tobacco received, shipped, lost, and
destroyed shall be included in the columns relating to stemmed leaf
tobacco and entered in the appropriate columns (debit or credit) so
designated. Tobacco in process, as well as siftings, received, shipped,
lost, and destroyed shall be included under scraps, cuttings, and
clippings and entered in the appropriate columns (debit or credit) so
designated. Tobacco materials acquired by the reduction of cigars or
cigarettes to materials shall be similarly recorded, with the notation
"Acquired by reduction of product." Stems received into the factory or
outside place of storage (not those accumulated from stemming operations
in the factory) shall also be included under scraps, cuttings, and
clippings and entered in the debit column of such materials received.
If such stems are thereafter lost or destroyed, they shall be similarly
included and entered in the credit column of scraps, cuttings, and
clippings shipped. All stems shipped to manufacturers of tobacco products
or dealers in tobacco materials, or for purposes other than fertilizer,
insecticide, or nicotine, shall be entered in the credit column designated
"Stems or Waste" shipped, but the designation of such column shall be
changed to read "Stems Shipped to Manufacturers, Dealers, Etc." Waste
tobacco materials shipped, lost, or destroyed need not be recorded. With
respect to an entry covering the loss or destruction of tobacco materials,
which is required to be entered in the factory revenue records, notation
showing the nature of the loss, etc., shall be made in the column designated "To Whom Shipped or Delivered" in the case of Form 73-Part 1, or in
the column designated "To Whom Shipped" in the case of Form 73-Part 2.
3. Form 74. Black Fat tobacco received, shipped, lost, and
destroyed shall be included in the columns relating to unstemmed leaf
tobacco and entered in the appropriate columns (debit or credit) so
designated. Perique tobacco received, shipped, lost, and destroyed
shall be included in the columns relating to stemmed leaf tobacco and
entered in the appropriate columns (debit or credit) so designated.
Siftings received, shipped, lost, and destroyed shall be included under
scraps, cuttings, and clippings and entered in the appropriate columns
(debit or credit) so designated. Tobacco materials acquired by the
reduction of manufactured tobacco to materials shall be similarly
recorded, with the notation "Acquired by reduction of product." Only
those stems received into the factory or outside place of storage (not
those accumulated from stemming operations in the factory) shall be
entered in the debit column designated "Tobacco Stems For Manufacturing
Purposes" received, and such designation shall be changed to read
"Tobacco Stems." If such stems are shipped to manufacturers of tobacco
products, dealers in tobacco materials, or for purposes other than
fertilizer, insecticide, or nicotine, or are lost or destroyed, they
shall be entered in the credit column designated "Tobacco Stems For
Manufacturing Purposes" shipped, and the designation of such column
changed to read "Tobacco Stems Shipped to Manufacturers, Dealers, Etc."
Also, those stems accumulated from stemming operations within the
factory which are shipped to such manufacturers, dealers, or for purposes
other than fertilizer, insecticide, or nicotine, shall be entered in
such column. Waste tobacco materials shipped, lost, or destroyed need
not be recorded. With respect to an entry covering the loss or destruction
of tobacco materials, notation showing the nature of the loss, etc., shall
be made in the column designated "To Whom Shipped or Delivered." Licorice,
sugar, gum, and substances other than tobacco, received or removed, are
not required to be recorded.
4. Inquiries in regard to this industry circular should refer to
the number thereof and should be directed to the appropriate Assistant
Regional Commissioner, Alcohol and Tobacco Tax.
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
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