The Comprehensive Smokeless Tobacco Health Education Act of 1986 (``Smokeless Tobacco Act'') requires that all packaging and advertising for smokeless tobacco products display one of three health warnings in rotating sequence. On January 16, 1993, the Commission published a Notice of Proposed Rulemaking seeking public comment on a method for rotating the health warnings on promotional materials based on the date of dissemination of the materials. On February 14, 1995, the Commission published another Notice of Proposed Rulemaking seeking public comment on a proposal to permit rotation of warnings on utilitarian items based on either the date of order or the date of dissemination of the items, provided the production of such items is carried out in a manner consistent with customary business practices. Having considered all of the issues raised during the two public comment periods, the Commission is now amending the regulations governing utilitarian items and the regulations governing promotional materials to permit rotation based on either the date of order or the date of dissemination, provided the production of such items or materials is carried out in a manner consistent with customary business practices. This document contains the statement of basis and purpose and the text of the final regulations.