In general, the Internal Revenue Code
(IRC) at 26 U.S.C. 5701 imposes Federal excise taxes on tobacco
products and cigarette papers and tubes, and, as described at 26
U.S.C. 5701(a)(2), the excise tax on large cigars is based on a
percentage of the price at which such cigars are sold by the
manufacturer or importer. In addition, the IRC at 26 U.S.C. 5741,
requires every manufacturer and importer of tobacco products to
keep records in such manner as the Secretary shall by regulation
prescribe. Under those IRC authorities, the TTB regulations at 27
CFR 40.187 and 41.181 require that manufacturers and importers of
large cigars maintain certain records regarding the price for which
those cigars are sold. The required records are necessary to
protect the revenue as they allow TTB to verify that the
appropriate amount of Federal excise tax is paid on large cigars.
(Federal excise taxes on other tobacco products (small cigars,
small and large cigarettes, snuff, chewing tobacco, pipe tobacco,
and roll-your-own tobacco) are based either on the product’s weight
per thousand or its weight per pound; see 26 U.S.C. 5701.)
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.