(b) The request requires the collection of a substantial number of specified records;

(c) The request is couched in categorical terms and requires an extensive search of the records responsive to it;

(d) The requested records have not been located in the course of a routine search and additional efforts are being made to locate them;

(e) The requested records require examination and evaluation to determine if they are exempt from disclosure; or

(f) The requested records or some of them involve the responsibility of another agency or another bureau or office of the Department whose assistance or views are being sought in processing the request.

When additional time is required for one or more of the above reasons, the written acknowledgement shall include a notation of the reason for the delay and as definite an indication as possible of the time required for a decisive response. If action on the request will be delayed because of reason (ƒ), a copy of the request is to be forwarded immediately to the other agency or office concerned.

(7) Granting of request. If it is determined that the request is to be granted, the person making the request will be notified in writing of the determination, of the fees involved in complying with the request, and of the locations where such fees are payable. Upon receipt by the Bureau of the fees stated in its reply, the person making the request will be promptly advised, in writing, of the time and place where inspection may be made; or, if he has requested that a copy of the records be sent to him without first inspecting the records or if it has been necessary to reproduce the records in order to provide for inspection, a copy of the records will be mailed to him for his retention. In the usual case, the records will be made available for inspection at the office of the Bureau where the request was made. However, if the person making the request has expressed a desire to inspect the records at an office of the Bureau other than the office where the request was made, every reasonable effort will be made to comply with the request. Records will be made available for inspection at such reasonable and proper times as not to interfere with their use by the Bureau or to exclude other persons from making inspections. In addition, reasonable limitations may be placed on the number of

records which may be inspected b person on any given date. The per making the request will not be allo to remove the records from the of where inspection is made. If, after m ing inspection, the person making request desires copies of all or a port of the requested records, copies will furnished to him upon payment of established fees prescribed by subpa graph (5) of this paragraph. Prepa ment of fees is not required where total fees with respect to the requ are $5 or less and the request is All by mail.

(8) Denial of request. If it is dete mined that the request for records shou be denied, the person making the r quest will be notified of such determin tion by mail. The letter of notificatio will specify the city or other locatio where the requested records are situate contain a brief statement of the groun for denial, including a reference to th specific exemption or exemptions und 5 U.S.C. 552 authorizing the withholdir of the record or part thereof and a bri explanation of how the exemption a plies to the record withheld. The lette of notification will also advise the re quester of his right to appeal to the D rector in accordance with subparagrap (9) of this paragraph and in the ever of denial upon appeal, to seek judici review in the U.S. district court in th district in which the complainant re sides, or has a principal place of bus ness, or in which the agency record are situated.

(9) Administrative appeal. At an time within 30 days after the date the letter of notification described in sub paragraph (8) of this paragraph. th person making the request may file a appeal to the Director. The appeal mus be in the form of a statement signed b the appellant and mailed to the Directo Bureau of Alcohol, Tobacco and Fire arms, 1200 Pennsylvania Avenue NW Washington, D.C., 20226. The statemen must contain the following information (1) The appellant's name and ad dress,

(ii) The identification of the record requested,

(iii) The date of the request and th date of the letter denying the reques and

(iv) A request that the Director con sider the denial. The appeal will be con sidered by the Director and the reques either granted or denied by him withi

20 working days from the date of filing: Provided, That under unusual circumstances, the appellant will be advised within the 20-day period of the reason for delay and will be advised of the date by which a decision may be expected to be made. The appellant will be notified of the determination by mail, and such determination shall be final. In case of a denial the notification shall set forth the exemption relied on, how it applies to the record withheld, and the reasons for asserting it.

(10) Judicial review. If the request is denied upon appeal pursuant to paragraph (c) (9) of this section, or if no determination is made on the appeal within 30 days after filing, the appellant may commence an action in a U.S. district court pursuant to 5 U.S.C. 522(a) (3). The statute authorizes an action only against the agency. With respect to records of the Bureau, the agency is the Bureau, not an officer or employee thereof. Service of process in such an action shall be in accordance with the Federal Rules of Civil Procedure (28 U.S.C. App.) applicable to actions against an agency of the United States. Where provided in such rules, delivery of process upon the Bureau must be directed to the Director, Bureau of Alcohol, Tobacco and Firearms: Attention: Chief Counsel, 1200 Pennsylvania Avenue NW., Washington, D.C., 20226. The district court will determine the matter de novo, and the burden will be upon the Bureau to sustain its action in not making the requested records available.

(d) Rules for disclosure of certain specified matters-(1) Accepted offers in compromise. For each offer in compromise submitted and accepted pursuant to 26 U.S.C. 7122, in any case arising under subtitle E of Title 26 of the United States Code (relating to alcohol, tobacco, and certain other excise taxes); pursuant to section 7 of the Federal Alcohol Administration Act (27 U.S.C. 207) in any case arising under that Act; or in connection with property seized under title I of the Gun Control Act of 1968 (18 U.S.C., chapter 44), and title XI of the Organized Crime Control Act of 1970 (18 U.S.C. chapter 40), a copy of the abstract and statement relating to the offer will be available for public inspection, for a period of 1 year from the date of acceptance, in the office of the Regional Director who received the offer. Information will not be disclosed, however, concerning any trade secrets, processes,

operations, style of work, or apparatus, or confidential data or any other matter within the prohibition of 18 U.S.C. 1905.

(1) The office of the Regional Director who received the offer and in the office of the district director of internal revenue for the internal revenue district in which the offer was submitted, in the case of offers accepted pursuant to the Code, title I of the Gun Control Act of 1968, or title XI of the Organized Crime Control Act of 1970 (18 U.S.C. chapter 40), or

(ii) The office of the Regional Director who received the offer, in the case of offers accepted pursuant to the Federal Alcohol Administration Act.

Information will not be disclosed, however, concerning any trade secrets, processes, operations, style of work, or apparatus, or confidential data or any other matter within the prohibition of 18 U.S.C. 1905.

(2) Information regarding liquor permits-(i) Applications for permits. Information with respect to the handling of applications for basic permits under the Federal Alcohol Adminstration Act (27 U.S.C. 204), operating permits under section 5171, I.R.C., and industrial use permits under section 5271, I.R.C., is maintained for public inspection in the offices of Regional Directions until the expiration of 1 year following final action on such applications. See § 1.59 of this chapter.

(ii) Card index record of permits. A current card index record for

(a) All persons to whom industrial use permits have been issued pursuant to section 5271, I.R.C.,

(b) All proprietors of distilled spirits plants to whom operating permits have been issued pursuant to section 5171, I.R.C., to cover distilling for industrial use, bonded warehousing of spirits for industrial use, or denaturing of spirits, and

(c) All applicants for such industrial use and operating permits,

is available for public inspection in the offices of Regional Directors.

(3) List of plants and permittees. Upon request, the Regional Director will furnish a list of any type of qualified proprietor or permittee located in his region.

(4) Information relating to certificates of label approval for distilled spirits,

wine, and malt beverages. Upon written request, the Director will furnish information as to the issuance, pursuant to section 5(e) of the Federal Alcohol Administration Act (27 U.S.C. 205(e)) and Part 4, 5, or 7 of this chapter, of certificates of label approval, or of exemption from label approval, for distilled spirits, wine, or malt beverages. The request must identify the class and type and brand name of the product and the name and address of the bottler or importer thereof or of the person to whom certificate was issued. The person making the request may obtain reproductions or certified copies of such certificates upon payment of the established fees prescribed by paragraph (c) (5) of this section. Information will not be disclosed, however, concerning any trade secrets, processes, operations, style of work, or apparatus, or confidential data or any other matter within the prohibition of 18 U.S.C. 1905.

(5) Information relating to the tax classification of a roll of tobacco wrapped in reconstituted tobacco. Upon request the Director, Bureau of Alcohol, Tobacco and Firearms, 1111 Constitution Avenue NW., Washington, DC 20224, will furnish information as to Bureau determination of the tax classification of a roll of tobacco wrapped in any substance containing tobacco, that is, reconstituted tobacco. The request should identify the brand name of the product and the name and address of the manufacturer or importer. Information will not be disclosed, however, concerning any trade secrets, processes, operations, apparatus, confidential data, or any other matter within the prohibition of 26 U.S.C. 7213 or 18 U.S.C. 1905.

(6) State cases. Regional Directors may, in the interest of Federal and State law enforcement, upon receipt of demands or requests of State authorities, and at the expense of the State, authorize special agents and other employees under their supervision to attend trials and administrative hearings in liquor, tobacco, firearms, and explosives cases, or in any criminal case, in which the State is a party, produce records, and testify as to facts coming to their knowledge in their official capacities: Provided, That in cases where a defendant in a criminal matter requests or demands testimony, authorization from the Director will be required: Provided

further, That such production or mony will not divulge information trary to 26 U.S.C. 7213, nor divulg formation subject to the restriction 26 U.S.C. 5848. See also 26 CFR 9000-1(f) and 18 U.S.C. 1905.

(7) Comments received in respon a notice of proposed rulemaking. Wr comments received in response notice of proposed rulemaking ma inspected by any person upon com ance with the provision of this subp graph (7) unless such comments are empt from disclosure under law. C ments which may be inspected are cated in the Office of the Regulat and Procedures Division, Bureau of cohol, Tobacco and Firearms, 1 Pennsylvania Avenue NW., Washing D.C. 20226. The request to inspect c ments must be in writing and signed the person making the request and sho be addressed to the Director, Bureau Alcohol, Tobacco and Firearms, Att tion: R:R, Washington, D.C. 201 Upon delivery of such a written requ to the place where the comments are cated during the regular business ho of that office, the person making the quest may inspect those comments portions thereof) which are not exer from disclosure. Copies of comments portions thereof) which are not exe from disclosure may be obtained b written request addressed to the Dired Bureau of Alcohol, Tobacco and F arms, Attention: R:R, Washington, I 20226. The person making the req for copies should allow a reasonable t for processing the request. The provisi of paragraph (c) (5) of this section, lating to fees, shall apply with res] to requests made in accordance with subparagraph. The provisions of this s paragraph shall apply in the case of quests for the inspection of, or copies comments that are made after Febru 15, 1974, regardless of when the c ments were submitted or regardless when the related notice of proposed r making was published in the FEDE REGISTER.

(e) Other disclosure procedures. procedure to be followed by officers employees of the Bureau upon rec of a request or demand for certain reau records or information the closure procedure for which is not cove by this section, see 26 CFR 301.900 [37 FR 13692, July 13, 1972, as amende 39 FR 2090, Jan. 17, 1974]

Subpart D-Rules, Regulations and Forms

AUTHORITY: 26 U.S.C. 7805, 68A Stat. 917. SOURCE: 39 FR 2092, Jan. 17, 1974, unless otherwise noted.

§ 71.31 Rules and regulations.

(a) Formulation. (1) Alcohol, tobacco, explosives, and certain firearms rules take various forms. The most important rules are issued as regulations and Treasury decisions, prescribed by the Director, and approved by the Secretary or his delegate. Other rules may be issued over the signature of the Director or the signature of any other official to whom authority has been delegated. The channeling of rules varies with the circumstances. Regulations and Treasury decisions are prepared in the Office of the Regulations and Procedures Division and reviewed in the Office of Chief Counsel, Bureau of Alcohol, Tobacco and Firearms. After approval by the Director, regulations and Treasury decisions are forwarded to the Secretary or his delegate for further consideration and final approval.

(2) Where required by 5 U.S.C. 553 and in such other instances as may be desirable, the Director publishes in the FEDERAL REGISTER general notice of proposed rules (unless all persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law). This notice includes (1) a statement of the time, place, and nature of public rulemaking proceedings; (ii) reference to the authority under which the rule is proposed; and (ii) either the terms or substance of the proposed rule or a description of the subjects and issues involved.

(3) (1) This subparagraph shall apply where the rules of this subparagraph are incorporated by reference in a notice of hearing with respect to a notice of proposed rulemaking.

(ii) A person wishing to make oral comments at a public hearing to which this subparagraph applies shall file his written comments within the time prescribed by the notice of proposed rulemaking (including any extensions thereof) and submit the outline referred to in paragraph (a) (3)(ii) of this section within the time prescribed by the notice of hearing. In lieu of the reading of a prepared statement at the hearing, such person's oral comments shall ordinarily

be limited to a discussion of matters relating to such written comments and to questions and answers in connection therewith. However, the oral comments shall not be merely a restatement of matters the person has submitted in writing. Persons making oral comments should be prepared to answer questions not only on the topics listed in nis outline but also in connection with the matters relating to his written comments. Except as provided in paragraph (b) of this section, in order to be assured of the availability of copies of such written comments or suggestions, or outline, on or before the beginning of such hearing, any person who desires such copies should make such a request within the time prescribed in the notice of hearing and shall agree to pay reasonable costs for copying. Persons who make such a request after the time prescribed in the notice of hearing will be furnished copies as soon as they are available, but it may not be possible to furnish the copies on or before the beginning of the hearing. Except as provided in the preceding sentences, copies of written comments regarding the rules proposed shall not be made available at the hearing.

(iii) A person who wishes to be assured of being heard shall submit, within the time prescribed in the notice of hearing, an outline of the topics he wishes to discuss, and the time he wishes to devote to each topic. An agenda will then be prepared containing the order of presentation of oral comments and the time allotted to such presentation. Ordinarily, a period of 10 minutes will be the time allotted to each person for making his oral comments.

(iv) At the conclusion of the presentation of comments of persons listed in the agenda, to the extent time permits, other comments will be received.

(v) In the case of unusual circumstances or for good cause shown, the application of rules contained in this subparagraph may be waived.

(vi) To the extent resources permit, the public hearings to which this subparagraph applies may be transcribed.

(b) Comments on proposed rules. Interested persons are privileged to submit any data, views, or arguments with respect to a notice of proposed rulemaking published pursuant to 5 U.S.C. 553. Any person submitting comments in response to a notice of proposed rulemaking shall specifically designate in

writing that portion (if any) of his comments which, in his opinion, contains material which is exempt from disclosure under law and shall state in writing the reasons for such exemption. Any portion of a comment which is designated as exempt from disclosure, and the reasons for such exemption, shall be set forth on pages separate from the balance of the comment. Any comments or any portion thereof not specifically designated as exempt from disclosure in accordance with this paragraph (b) will be made available pursuant to paragraph (d) (7) of § 71.22. The name of any person submitting comments (whether or not exempt from disclosure in whole or in part) or requesting a public hearing, the issues which may be discussed at the hearing, and outlines relating to the hearing are not exempt from disclosure. (See paragraph (a)(3) of this § 71.31 for rules relating to hearing outlines.) The disclosure by the Bureau of

(1) Any name,

(2) Any comments, or any portion therefore not specifically designated as exempt from disclosure by the person submitting the comment,

(3) Any comments, or any portion thereof which is designated as exempt from disclosure by the person submitting the comments but which is not so exempt under law, or

(4) The issues which will be discussed at a public hearing and related outlines, will be a disclosure authorized by law within the meaning of any statute governing the disclosure of information.

(c) Petition to change rules. Interested persons are privileged to petition for the issuance, amendment, or repeal of a rule. A petition for the issuance of a rule should identify the section or sections of law involved; and a petition for the amendment or repeal of a rule should set forth the section or sections of the regulations involved. The petition shall also set forth the reasons for the requested action. Such petitions will be given careful consideration and the petitioner will be advised of the action taken thereon. Petitions should be addressed to the Director, Bureau of Alcohol, Tobacco and Firearms, Attention: RR, Washington, D.C. 20226.

(d) Publication of rules and regulations. (1) General. All Bureau of Alcohol, Tobacco and Firearms Treasury decisions (including new and reissued regulations) are published in the FEDERAL

39-095-75- -7

REGISTER and in the Code of Fe Regulations. The Treasury deci which amend existing regulations also published in the monthly Alc Tobacco and Firearms Bulletin. The cohol, Tobacco and Firearms Bullet the authoritative instrument of the rector for announcing official rulings procedures of the Bureau and for lishing amendatory Treasury decisi legislation, administrative matters, other items of general interest. The 1 letin incorporates, into one publicat all matters of the Bureau which ar public record. It is the policy of the reau to publish in the Bulletin all s stantive rulings necessary to promot uniform application of all laws adm istered by the Bureau as well as ruli that supersede, revoke, modify, or am any of those previously published in Bulletin (including those published p to July 1, 1972, in the Internal Reve Bulletin). Procedures relating solely matters of internal management are published; however, industry regulati appearing in internal management do ments and statements of internal pr tices and procedures that affect the rig and duties of the public are publish Rulings and procedures reported in Bulletin do not have the force and eff of Treasury Department Regulations, they may be used as precedents. In app ing published rulings and procedures, effect of subsequent legislation, regu tions, court decisions, rulings, and pro dures must be considered. Concer parties are cautioned against reach the same conclusion in other cases unl the facts and circumstances are subst tially the same. The Bulletin is publis] monthly and may be obtained from Superintendent of Documents on a s scription basis. Bulletin contents o permanent nature are consolidated ea calendar year into cumulative issu which are sold on a single-copy basis.

(2) Objectives and standards for p lication of ATF Rulings and ATF Pro dures in the Alcohol, Tobacco and Fi arms Bulletin. (i) (a) An "ATF Ruli is an official interpretation by the I reau that has been published in the B letin for the information and guidance taxpayers, Bureau officials, and oth concerned. ATF Rulings represent conclusions of the Bureau on the app cation of the law to the entire state facts involved. In those that are ba on positions taken in rulings to indus