27 CFR 40.25a - Pipe tobacco and roll-your-own tobacco tax rates and classification.

§ 40.25a Pipe tobacco and roll-your-own tobacco tax rates and classification.

(a)Tax rates. Pipe tobacco and roll-your-own tobacco are taxed at the following rates under 26 U.S.C. 5701(f) and (g), respectively:

Product Tax rate per pound* for removals during the following periods:
2002 to
March 31, 2009
April 1, 2009 and after
Pipe tobacco $ 1.0969 $ 2.8311
Roll-your-own tobacco $ 1.0969 $ 24.78

* Prorate tax for fractions of a pound.


(1) Pipe tobacco and roll-your-own tobacco, before removal subject to tax, must be put up in packages that conform to the requirements of §§ 40.211 and 40.212, and of § 40.216a or § 40.216b as appropriate.

(2) Any tobacco that has been processed and that is removed in a package, as that term is defined in § 40.11, that does not bear the notice for smokeless tobacco prescribed in § 40.216 or the notice for pipe tobacco prescribed in § 40.216a is deemed to be roll-your-own tobacco and subject to tax at the rate applicable to roll-your-own tobacco. A container of processed tobacco, the contents of which weigh 10 pounds or less (including any added non-tobacco ingredients or constituents), that is removed within the meaning of this part for any purpose other than destruction, export, delivery as a sample to a manufacturer of processed tobacco or tobacco products for the purpose of soliciting orders of processed tobacco, or scientific testing or testing of equipment which results in the destruction of the processed tobacco or the return of the processed tobacco to the factory premises, is deemed to be a package offered for sale or delivery to the ultimate consumer.

(3) Subject to paragraph (b)(4) of this section, any tobacco that has been processed and that is removed in a package, as that term is defined in § 40.11, is deemed to be roll-your-own tobacco and subject to tax at the rate applicable to roll-your-own tobacco, even though the package bears the notice required for pipe tobacco under § 40.216a, if:

(i) The package does not bear the declaration “pipe tobacco” in direct conjunction with, parallel to, and in substantially the same conspicuousness of type and background as the brand name each time the brand name appears on the package; or

(ii) The package or accompanying materials bear any representation that would suggest a use other than as pipe tobacco. ( 26 U.S.C. 5702 and 5723) The term 'accompanying materials' includes, but is not limited to, any point of sale advertising or other printed product communications issued by the manufacturer or importer of pipe tobacco products. In addition, the inclusion of cigarette papers or tubes in a package bearing a 'pipe tobacco' declaration will suggest a use other than pipe tobacco.

(4) During the period from June 22, 2009, through March 23, 2010, manufacturers may continue to remove products as pipe tobacco in packages that do not bear the declaration “pipe tobacco” in the manner prescribed in paragraph (b)(3)(i) of this section.

[T.D. TTB-75, 74 FR 14482, Mar. 31, 2009, as amended by T.D. TTB-78, 74 FR 29408, June 22, 2009; T.D. TTB-81, 74 FR 48653, Sept. 24, 2009; T.D. TTB-104, 77 FR 37302, June 21, 2012]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code

§ 5701 - Rate of tax

§ 5703 - Liability for tax and method of payment

§ 5704 - Exemption from tax

§ 5705 - Credit, refund, or allowance of tax

§ 5711 - Bond

§ 5712 - Application for permit

§ 5713 - Permit

§ 5721 - Inventories

§ 5722 - Reports

§ 5723 - Packages, marks, labels, and notices

§ 5731 - Imposition and rate of tax

§ 5732 - Payment of tax

§ 5733 - Provisions relating to liability for occupational taxes

§ 5734 - Application of State laws

§ 5741 - Records to be maintained

§ 5751 - Purchase, receipt, possession, or sale of tobacco products and cigarette papers and tubes, after removal

§ 5753 - Disposal of forfeited, condemned, and abandoned tobacco products, and cigarette papers and tubes

§ 5761 - Civil penalties

§ 5762 - Criminal penalties

§ 5763 - Forfeitures

§ 6061 - Signing of returns and other documents

§ 6065 - Verification of returns

§ 6109 - Identifying numbers

§ 6151 - Time and place for paying tax shown on returns

§ 6301 - Collection authority

§ 6302 - Mode or time of collection

§ 6311 - Payment of tax by commercially acceptable means

§ 6313 - Fractional parts of a cent

§ 6402 - Authority to make credits or refunds

§ 6404 - Abatements

§ 6423 - Conditions to allowance in the case of alcohol and tobacco taxes

§ 6676 - Erroneous claim for refund or credit

§ 6806 - Occupational tax stamps

§ 7011 - Registration—persons paying a special tax

§ 7212 - Attempts to interfere with administration of internal revenue laws

§ 7325 - Personal property valued at $100,000 or less

§ 7342 - Penalty for refusal to permit entry or examination

§ 7502 - Timely mailing treated as timely filing and paying

§ 7503 - Time for performance of acts where last day falls on Saturday, Sunday, or legal holiday

§ 7606 - Entry of premises for examination of taxable objects

§ 7805 - Rules and regulations

U.S. Code: Title 31 - MONEY AND FINANCE

Title 27 published on 05-Jun-2018 04:13

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 27 CFR Part 40 after this date.

  • 2016-06-21; vol. 81 # 119 - Tuesday, June 21, 2016
    1. 81 FR 40183 - Importer Permit Requirements for Tobacco Products and Processed Tobacco, and Other Requirements for Tobacco Products, Processed Tobacco and Cigarette Papers and Tubes
      GPO FDSys XML | Text
      DEPARTMENT OF THE TREASURY, Alcohol and Tobacco Tax and Trade Bureau
      Final rule; Treasury decision.
      Effective July 21, 2016, the temporary regulations published in the Federal Register as T.D. TTB-115 at 78 FR 38555 on June 27, 2013, are adopted as final, and those temporary regulations will no longer have a sunset date of August 26, 2016.
      27 CFR Parts 40, 41, and 44
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