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DEPARTMENT OF THE TREASURY |
Industry Circular Number: 2000-2 |
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Exportation of Distilled Spirits, Wine, Beer and Tobacco Products Without Payment of Tax To: All Proprietors of Distilled Spirits Plants, Bonded Wine Premises, Breweries, Tobacco Manufacturers and Export Warehouses What is the purpose of this circular? We are issuing this circular to clarify our position on:
How do these issues apply to me? In recent years, there have been changes in the shipping and transportation arrangements you use for untaxpaid alcohol beverages or tobacco products you remove from bonded premises for export from the United States. The changes include:
These activities raise questions about the acceptability of NVOCC bills of lading and the legality of in-transit stops of untaxpaid alcohol beverages or tobacco products removed for export. We discuss these issues and others in this circular. What is ATF’s position on NVOCCs? The Federal Maritime Commission is responsible for regulating maritime carriers. NVOCCs are bonded with the Commission, which created that term to distinguish them from Vessel Operating Common Carriers (VOCCs). NVOCCs:
We will now accept an NVOCC export bill of lading as an acceptable proof of export provided it contains all of the information required by ATF regulations in Title 27, Code of Federal Regulations, Parts 252 or 290. What is ATF’s position on freight forwarders? An NVOCC is distinguished from a freight forwarder. Freight forwarders:
Freight forwarders act as agents and handle funds in trust for their shippers or principals. A freight bill or any other type of documentation issued by a freight forwarder is not acceptable as proof of export. What is ATF’s position for in-transit stops of untaxpaid shipments? The laws covering the exportation of untaxpaid alcohol beverages or tobacco products do not provide for any stops of such products at unbonded facilities prior to being laden on the export carrier. This applies whether the stop is for:
For such in-transit stops to be acceptable under the law, you must taxpay the alcohol beverages or tobacco products prior to removal from your bonded premises. You may make in-transit stops of untaxpaid alcohol beverages or tobacco products you withdraw for exportation only on these bonded premises:
These restrictions also apply to shipments handled by NVOCCs. If you are an NVOCC and you want to store untaxpaid products at your warehouse pending exportation, you must first qualify under internal revenue bond:
What types of export shipments does the law authorize? Without payment of tax you may remove from your bonded premises alcohol beverage or tobacco products for these purposes.
What is an acceptable proof of export?
1. What is acceptable to prove an export to contiguous foreign countries? Any one of these is acceptable for proof of export to Canada or Mexico.
2. What is acceptable to prove an export to non-contiguous foreign countries? Any one of these is acceptable to prove export to a non-contiguous foreign country. You may also use these documents to prove a transfer to United States possessions, including Puerto Rico and the Virgin Islands.
3. What is acceptable to prove an export for use as supplies on certain vessels and aircraft? Any one of these is acceptable to prove export for use as supplies on vessels and aircraft.
4. What is the difference between alcohol beverage exports by aircraft and for use as supplies for aircraft? Alcohol beverages for use as supplies are entered into Customs custody at the airport. Airlines then make withdrawals as needed to meet demand on international flights. When the airlines have used all the alcohol beverages covered by a particular ATF export form, the Customs officer at the airport certifies that form. However, when the alcohol beverages are shipped by air, the entire shipment is laden on board the aircraft at the time of export, and the Customs officer can certify the applicable form at that time. 5. What is acceptable to prove a transfer to and deposit in a foreign trade zone (FTZ)? The FTZ operator must complete all the applicable information and sign the appropriate form for the export product:
6. What is acceptable to prove a transfer to and deposit in a customs bonded warehouse (CBW) or a customs manufacturing bonded warehouse (CMBW)? Prior to making any shipments of this type, you must verify the warehouse is properly qualified with the United States Customs Service. The CBW or CMBW operator must complete all applicable information and sign the appropriate form for the export product:
7. What is acceptable to prove an export from an export warehouse? Prior to making any shipments of this type, you must verify the warehouse is properly qualified as an export warehouse (EW). The EW operator must complete all applicable information and must sign ATF Form 2149/2150 (5200.14) in part V. You may not export alcohol beverages through export warehouses. 8. What is acceptable to prove an export for use by the armed forces? You may deliver your alcohol beverages or tobacco products to a military base in the United States prior to being shipped to a base in a foreign country. The commanding, supply or receiving officer or other responsible military personnel at the military base where you deliver the shipment must complete and sign the appropriate form for the product you export.
Alternatively, the responsible military personnel may acknowledge receipt for export on the Department of Defense Form, Transportation Control and Movement Document (TCMD). If you use a TCMD as proof of export, the military personnel must legibly provide this information: date, discrepancy from bill of lading or shipping document, rank, title, and signature If the place of delivery is in a foreign country, handle the shipment as an export to a foreign country and use any of the documents listed in paragraphs 1 or 2, as applicable, to prove export. Regardless of the location of the place of delivery, all alcohol beverages or tobacco products you remove on Forms 5100.11, 1689 (5130.12), or 2149/2150 (5200.14) for transfer to the armed forces must be used by the military outside of the United States. You may ship tobacco products to other Federal departments or agencies for their official use. These instructions also apply to these shipments. How am I required to prepare the ATF export forms? You must follow the instructions on the forms to accurately prepare and distribute ATF Forms 5100.11, 1689 (5130.12), or 2149/2150 (5200.14).
What other information is useful for me to know? We are reviewing export regulations and procedures with the intent to modernize and automate them as much as possible. We plan within the next few months to publish in the Federal Register a notice of proposed rulemaking. Until any changes are effective, you must comply with the current regulations and with the instructions in this circular and others we issued to address export requirements. We invite you to comment on the notice. Will ATF accept any other evidence of export? If you, as a proprietor of an exporting distilled spirits plant, winery, brewery, tobacco manufacturer or export warehouse, have made every effort, but remain unable to obtain any of the documentation discussed in this circular, we may consider other evidence to be acceptable. Before we accept an alternative proof of export, you must request an alternative method under the provisions of 27 CFR §§ 252.20 or 290.72. We may request that you provide an example of the documentation that you propose to provide to prove export. We may or may not accept your proposed alternative. Failure to submit satisfactory proof of export may subject you to liability for the excise tax plus interest. Does ATF inspect the export documentation I maintain at my premises? If you have a current ATF approval to maintain all export documentation at your premises, we check this documentation on a random sampling basis. We verify the accuracy and acceptability of these documents with inspectors during field inspections or with specialists in the National Revenue Center, as appropriate. If we determine that your documentation is inadequate, you may be subject to liability for the excise tax plus interest. Also, we remind you that the law subjects those who submit fraudulent export documents to civil and criminal penalties under the Internal Revenue Code. You may find more detailed information about this in:
Where can I get more information? You may request more information about this circular. Please refer to this circular number and address your inquiry to: Chief, National Revenue Center
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