Week of February 1, 2008
Greetings! Hope you have had an encouraging and creative week! This week's offerings include a reached settlement with SSC International, the repeal of the Special Occupational Tax, and notice
of an upcoming seminar.
In the TTB Newsletter, we compile the top TTB news of the week and other helpful information about the Bureau and the Federal alcohol and tobacco laws and regulations we enforce. Please send any questions and/or comments to Susan Stewart Evans, Executive Liaison for Industry Matters (susan.stewart-evans@ttb.gov) and/or Frosty Chapman, State Liaison (forrest.chapman@ttb.gov). |
 |
SSC INTERNATIONAL REACHES SETTLEMENT WITH TTB
We announced our acceptance of a $20,000 Offer-in-Compromise submitted by SSC International, Inc., a duly qualified importer of alcohol beverages, to resolve alleged violations of the Federal Alcohol Administration Act , the Internal Revenue Code, and the Alcoholic Beverage Labeling Act. The Offer-in-Compromise stemmed from SSC's importation and removal from Customs custody of alcohol beverages allegedly without Certificates of Label Approval (COLAs), without the Government warning statement, and not labeled in conformity with Federal regulations. The alleged violations occurred during the period of August 2003 through November 2005. SSC will take steps to ensure that future importations comply with Federal labeling requirements.
REPEAL OF SPECIAL (OCCUPATIONAL) TAX
On August 10, 2005, President Bush signed into law the "Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users," Public Law 109-59. Section 11125 of that act permanently repeals, effective July 1, 2008, the special (occupational) taxes on:
- Producers and marketers of alcohol beverages,
- Manufactures of non-beverage products,
- Users of tax-free alcohol, and
- Users and dealers of specially denatured spirits.
Although the tax has been repealed, recordkeeping and registration requirements remain. Further, any tax liabilities that were incurred for periods before the law's effective date remain and will be collected. (However, there is no liability for alcohol occupations, other than users of tax-free alcohol and users and dealers of specially denatured spirits, during the previously enacted three-year tax suspension that runs from July 1, 2005, through June 30, 2008.)
Section 11125 of Public Law 109-59 does not affect any tobacco occupations; therefore,
- Manufacturers of tobacco products,
- Manufacturers of cigarette papers and tubes, and
- Tobacco export warehouse proprietors
must continue to register and pay the special (occupational) tax every year. The registration and tax for these tobacco occupations is due before beginning business, and on or before July 1 of every year after that.
TTB plans to issue regulations amendments to implement the repeal before its July 1, 2008, effective date. Corresponding changes will be made throughout the TTB Web site as appropriate.
TTB WINE SEMINAR IN RALEIGH, NC
TTB will be presenting Federal compliance training for the wine industry on February 21, 2008, at NC State University in Raleigh, North Carolina. Topics include the Application Process, Changes after Original Qualification, Recordkeeping & Reporting, Excise Taxes, Labeling, Current Issues, and Pay.gov.
For more information or to register, please click here.