at the factory, copies of invoices or other commercial records containing the information required as to each removal, in such manner that the information may be readily ascertained therefrom, such copies will be considered the supporting record required by this section. The supporting record shall be retained by the manufacturer for 3 years following the close of the year covered therein and shall be made available for inspection by any ATF officer upon his request. (Sec. 2128(c), Pub. L. 94-455, 99 Stat. 1921 (26 U.S.C. 5741)) [T.D. ATF-40, 42 FR 5011, Jan. 26, 1977) Subpart B-[Reserved] Subpart C-Losses of Cigars, Cigarettes, and Cigarette Papers and Tubes Caused by a Disaster Occurring After the Date of Enactment of the Excise Tax Technical Changes Act of 1958 Sec. 296.71 Scope of subpart. DEFINITIONS 296.72 Meaning of terms. PAYMENTS 296.73 Circumstances under which payment may be made. CLAIMS PROCEDURE 296.74 Execution and filing of claims. 296.75 Separation of imported and domestic cigars, cigarettes, and cigarette papers and tubes; separate claims for taxes and duties. 296.76 Claimant to furnish satisfactory proof. 296.77 Supporting evidence. 296.78 Action by regional regulatory administrator. DESTRUCTION OF CIGARS, CIGARETTES, AND CIGARETTE PAPERS AND TUBES 296.79 Supervision. PENALTIES 296.80 Penalties. Subparts D-F-[Reserved] Subpart G-Dealers in Cigars and Cigarettes 296.161 Scope of subpart. 296.162 Territorial extent. 296.163 Meaning of terms. 296.164 Authority of ATF officers to enter premises. 296.165 Interference with administration. 296.166 Dealing in cigars and cigarettes. 296.167 Liability to tax. 296.168 Liability to penalties and forfeit ures. CROSS REFERENCE: For exportation of tobacco materials, tobacco products, and cigarette papers and tubes, without payment of tax, or with drawback of tax, see Part 290 of this subchapter. Subpart A-Application of Section 6423, Internal Revenue Code of 1954, as amended, to Refund or Credit of Tax on Cigars, Cigarettes, and Cigarette Papers and Tubes AUTHORITY: Sec. 7805, 68A Stat. 917; 26 U.S.C. 7805. SOURCE: T.D. 6395, 24 FR 599, Jan. 28, 1959, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975. GENERAL § 296.1 Scope of regulations in this subpart. The regulations in this subpart relate to the limitations imposed by section 6423, I.R.C., on the refund or credit of tax paid or collected in respect to any article of a kind subject to a tax imposed by Chapter 52, I.R.C., or by any corresponding provision of prior internal revenue laws. § 296.2 Meaning of terms. When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Article. The commodity in respect to which the amount claimed was paid or collected as a tax. Regional regulatory administrator. The principal ATF regional official responsible for administratering regulations in this part. Claimant. Any person who files a claim for a refund or credit of tax under this subpart. Director. The Director, the Department of the Treasury, Washington, D.C. I.R.C. Internal Revenue Code of 1954, as amended. Owner. A person who, by reason of a proprietary interest in the article, furnished the amount claimed to the claimant for the purpose of paying the tax. Person. An individual, a trust, estate, partnership, association, company, or corporation. Regional regulatory administrator. The principal regional official responsible for administering regulations in this subpart. Tax. Any tax imposed by Chapter 52, I.R.C., or by any corresponding provision of prior internal revenue laws, and in the case of any commodity of a kind subject to a tax under such chapter, any tax equal to any such tax, any additional tax, or any floor stocks tax. The term includes an exaction denominated a "tax", and any penalty, addition to tax, additional amount, or interest applicable to any such tax. (26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and Sec. 38, Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744)) [T.D. 6395, 24 FR 599, Jan. 28, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-42, 42 FR 8372, Feb. 10, 1977; T.D. ATF-48, 43 FR 13531, Mar. 31, 1978] § 296.3 Applicability to certain credits or refunds. The provisions of this subpart apply only where the credit or refund is claimed on the grounds that an amount of tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This subpart does not apply to: (a) Any claim for drawback, (b) Any claim made in accordance with any law expressly providing for credit or refund where an article is withdrawn from the market, returned to bond, lost, or destroyed, and (c) Any claim based solely on errors in computation of the quantity of an article subject to tax or on mathematical errors in computation of the amount of the tax due, or to any claim in respect of tax collected or paid on an article seized and forfeited, or destroyed, as contraband. [T.D. 6395, 24 FR 599, Jan. 28, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-42, 42 FR 8372, Feb. 10, 1977] § 296.4 Ultimate burden. For the purposes of this subpart, the claimant, or owner, shall be treated as having borne the ultimate burden of an amount of tax only if: (a) He has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person, (b) No understanding or agreement exists for any such relief or shifting, and (c) If he has neither sold nor contracted to sell the articles involved in such claim, he agrees that there will be no such relief or shifting, and furnishes bond as provided in § 296.10. § 296.5 Conditions to allowance of credit or refund. No credit or refund to which this subpart is applicable shall be allowed or made, pursuant to a court decision or otherwise, of any amount paid or collected as a tax unless a claim therefor has been filed, as provided in this subpart, by the person who paid the tax and the claimant, in addition to establishing that he is otherwise legally entitled to credit or refund of the amount claimed, establishes: (a) That he bore the ultimate burden of the amount claimed, or (b) That he has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount, or (c) That (1) the owner of the article furnished him the amount claimed for payment of the tax, (2) he has filed with the regional regulatory administrator the written consent of such owner to the allowance to the claimant of the credit or refund, and (3) such owner satisfies the requirements of paragraph (a) or (b) of this section. § 296.6 Requirements for persons intending to file claim. Any person who, having paid the tax with respect to an article, desires to claim refund or credit of any amount of such tax to which the provisions of this subpart are applicable must: (a) File a claim, as provided in § 296.7, (b) Comply with any other provisions of law or regulations which may apply to the claim, and (c) If, at the time of filing the claim, neither he nor the owner has sold or contracted to sell the articles involved in the claim, file a bond on Form 2490, as provided by § 296.10. CLAIM PROCEDURE § 296.7 Execution and filing of claim. Claims to which this subpart is applicable shall be executed on Form 843 in accordance with instructions on the form and shall be filed with the regional regulatory administrator for the region in which the tax was paid. (For provisions relating to hand-carried documents see § 301.6091-1(b) of this chapter.) The claim shall set forth each ground upon which the claim is made in sufficient detail to apprise the regional regulatory administrator of the exact basis therefor. Allegations pertaining to the bearing of the ultimate burden relate to additional conditions which must be established for a claim to be allowed and are not in themselves legal grounds for allowance of a claim. There shall also be attached to the form and made a part of the claim the supporting data required by § 296.8. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim. [T.D. 7008, 34 FR 3672, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975] § 296.8 Data to be shown in claim. Claims to which this subpart is applicable, in addition to the requirements of § 296.7, must set forth or contain the following: (a) A statement that the claimant paid the amount claimed as a “tax” as defined in this subpart. (b) Full identification (by specific reference to the form number, the date of filing, the place of filing, and the amount paid on the basis of the particular form or return) of the tax forms or returns covering the payments for which refund or credit is claimed. (c) The written consent of the owner to allow the refund or credit to the claimant (where the owner of the article on which the tax was paid has furnished the claimant the amount claimed for the purpose of paying the tax). (d) If the claimant or the owner, as the case may be, has neither sold nor contracted to sell the articles involved in the claim, a statement that the claimant or the owner, as the case may be, agrees not to shift, directly or indirectly in any manner whatsoever, the burden of the tax to any other person. (e) If the claim is for refund of a floor stocks tax, or of an amount resulting from an increase in rate of tax applicable to an article, a statement as to whether the price of the article was increased on or following the effective date of such floor stocks tax or rate increase, and, if so, the date of the increase, together with full information as to the amount of such price in § 296.10 Bond, Form 2490. Each claim for a refund or credit of tax on articles which the claimant or the owner, as the case may be, has neither sold nor contracted to sell at the time of filing of the claim must be accompanied by a bond on Form 2490. The bond shall be executed by the claimant or the owner of the articles, as the case may be, in accordance with the provisions of this subpart and the instructions printed on the form. Such bond shall be conditioned that there will be no relief or shifting of the ultimate burden of the tax to any other person. The penal sum shall not be less than the amount of tax claimed on all articles which have not been sold or contracted for sale at the time of filing of the claim. Bonds required by this subpart shall be given with corporate surety or with collateral security. A separate bond must be filed for each claim. § 296.11 Corporate surety. Surety bonds required under the provisions of this subpart may be given only with corporate sureties holding certificates of authority from the Secretary of the Treasury as acceptable sureties on Federal bonds. Each bond and each extension of coverage of bond shall at the time of filing be accompanied by a power of attorney authorizing the agent or officer who executed the bond to so act on behalf of the surety. The regional regulatory administrator who is authorized to approve the bond may, whenever he deems it necessary, require additional evidence of the authority of the agent or officer to execute the bond or extension of coverage of bond. The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed document it shall be accompanied by a certificate of its validity. Limitations concerning corporate sureties are prescribed by the Secretary in Treasury Department Circular No. 570, as revised. The surety shall have no interest whatever in the business covered by the bond. [T.D. 6961, 33 FR 9494, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975] § 296.12 Deposit of securities in lieu of corporate surety. In lieu of corporate surety, the principal may pledge and deposit securities which are transferable and are guaranteed as to both interest and principal by the United States, in accordance with the provisions of 31 CFR Part 225. § 296.13 Authority to approve bonds. Assistant regional commissioners are authorized to approve all bonds required by this subpart. {296.14 Termination of liability. Bonds on Form 2490 will be terminated by the regional regulatory administrator on receipt of satisfactory evidence that the person giving the bond has disposed of the articles covered by the bond and that he bore the amount ultimate burden of the claimed and that no understanding or agreement exists whereby he will be relieved of such burden or shift such burden to another person. 296.15 Release of pledged securities. Securities of the United States, pledged and deposited as provided by § 296.12, shall be released only in accordance with the provisions of 31 CFR Part 225. When the regional regulatory administrator is satisfied that they may be released, he shall fix the date or dates on which a part or all of such securities may be released. At any time prior to the release of such securities, the regional regulatory administrator may, for proper cause, extend the date of release for such additional length of time as he deems necessary. PENALTIES § 296.16 Penalties. It is an offense punishable by fine and imprisonment for anyone to make or cause to be made any false or fraudulent claim upon the United States, or to make any false or fraudulent statements, or representations, in support of any claim, or to falsely or fraudulently execute any documents required by the provisions of the internal revenue laws, or any regulations made in pursuance thereof. Subpart B-[Reserved] Subpart C-Losses of Cigars, Cigarettes, and Cigarette Papers and Tubes Caused by a Disaster Occurring After the Date of Enactment of the Excise Tax Technical Changes Act of 1958 AUTHORITY: Sec. 7805, 68A Stat. 917, sec. 5708, 72 Stat. 1420; 26 U.S.C. 7805, 5708. § 296.71 Scope of subpart. This subpart prescribes the requirements necessary to implement section 5708, LR.C., concerning payments which may be made by the United States in respect to the internal revenue taxes paid or determined and customs duties paid on cigars, cigarettes, and cigarette papers and tubes removed, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of a disaster occurring in the United States on or after September 3, 1958. (T.D. 6871, 31 FR 59, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975) DEFINITIONS § 296.72 Meaning of terms. When used in this subpart, the following terms shall have the meanings given in this section, unless the context clearly indicates otherwise. Words in the plural form shall include the singular, and vice versa, and words indicating the masculine gender shall include the feminine. The terms "includes" and “including" do not exclude things not listed which are in the same general class. Act. The Excise Tax Technical Changes Act of 1958 (Pub. L. 85-859, 72 Stat. 1275), enacted September 2, 1958. Assistant Director (Regulatory Enforcement). The Assistant Director for regulatory enforcement activities in the Bureau of Alcohol, Tobacco and Firearms, who is responsible to, and functions under the direction and supervision of, the Director. Claimant. The person who held the cigars, cigarettes, or cigarette papers or tubes for sale at the time of the disaster and who files claim under this subpart. Commissioner of Customs. The Commissioner of Customs, U.S. Customs Service, The Department of the Treas ury, Washington, D.C. Disaster. A flood, fire, hurricane, earthquake, storm, or other catastrophe which has occurred in any part of the United States on and after the day following the date of enactment of the act and which the President of the United States has determined, under |