Implementation of Public Laws 106-476 and 106-554, Relating to Tobacco Importation Restrictions, Markings, Repackaging, and Destruction of Forfeited Tobacco Products (2000R-492P)

This final rule amends the regulations governing tobacco products in order to implement several provisions of the Imported Cigarette Compliance Act of 2000 included as part of the Tariff Suspension and Trade Act of 2000. Sections 4002 and 4003 of this new law require that tobacco products and cigarette papers and tubes manufactured in the United States and labeled or shipped for exportation (under the Internal Revenue Code of 1986 (IRC)) can only be re-imported by the original manufacturer or by an export warehouse proprietor authorized to do so by the original manufacturer (except for a personal use exemption discussed below), provide that those articles labeled for exportation may not be sold or held for sale for domestic consumption in the United States unless they are removed from their export packaging and repackaged by the original manufacturer into new packaging that does not contain an export label, and require the destruction of tobacco products forfeited under section 5761(c) of the IRC. This final rule also amends the regulations governing tobacco products in order to implement section 315 of the Consolidated Appropriations Act, 2001. Travelers entering the United States, if they claim and are granted a personal use exemption, are allowed to bring U.S. manufactured tobacco products labeled for export back into the United States up to the quantity allowed entry free of tax and duty under Chapter 98 of the Harmonized Tariff Schedule of the United States. In addition, a traveler claiming such a personal use exemption upon arrival at the border may voluntarily relinquish to the U.S. Customs Service any excess of such quantity without incurring the penalty under section 5761(c) of the IRC. This final rule implements these changes in the law by providing new and amended regulations in parts 44 (formerly part 290), 46 (formerly part 296) and 275 of title 27 of the Code of Federal Regulations (CFR). Note that the effective date of the above provisions of the Impo