§ 646.146 General ecord-keeping and reporting requirements.

Each distributor of cigarettes shall keep copies of invoices, bills of lading, or other suitable commercial records relating to each disposition of more than 60,000 cigarettes. Dividing a single agreement for the disposition of more than 60,000 cigarettes into the delivery of smaller components of 60,000 cigarettes or less does not exempt the distributor from the recordkeeping requirements of this part. The distributor shall include the information prescribed in § 646.147 in his commercial records of disposition.

  1. a.(a) Persons subject to record-keeping requirements. Each person who distributes cigarettes or smokeless tobacco must keep copies of invoices, bills of lading, or other suitable commercial records equivalent thereto relating to each disposition of more than 10,000 cigarettes, or smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages. Dividing a single agreement for the disposition of more than 10,000 cigarettes, or smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages, into delivery of smaller components of 10,000 cigarettes or less, or smokeless tobacco of not more than 500 single-unit consumer-sized cans or packages, does not exempt persons from the record-keeping requirements of this part. Such distributors must include the information prescribed in § 646.147 in their commercial disposition records. Records persons generate in the ordinary course of business suffice to satisfy this section.

  2. b.(b) Reporting requirements and persons subject to them.

    1. 1.(1) Except for a tribal government, each person who engages in a delivery sale, and who distributes cigarettes in excess of 10,000, or smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages, or their equivalent, within a single calendar month, must prepare and submit to the Director, ATF, a Tobacco Inventory and Direct Sales Report (“report”), in accordance with instructions on ATF’s website, by the 10th day of the calendar month following the month in which the delivery or distribution occurred. The report must include the following information:

      1. i.(i) The person’s beginning and ending inventories of cigarettes and cans or packages of smokeless tobacco (in total) for such month, including the cigarettes’ or smokeless tobacco’s manufacturer and brand family names, and the number of cigarettes or ounces of smokeless tobacco inventoried.

      2. ii.(ii) The total quantity of cigarettes and cans or packages of smokeless tobacco — including the cigarettes’ or smokeless tobacco’s manufacturer and brand family names — the person received within such month from each other person (itemized by name and address).

      3. iii.(iii) The total quantity of cigarettes and cans or packages of smokeless tobacco — including the cigarettes’ or smokeless tobacco’s manufacturer and brand family names — that the person disposed of within such month to each person (itemized by name and address) other than a retail purchaser.

    2. 2.(2) Each person described in paragraph (b)(1) of this section must also submit a copy of each completed report to the attorneys general and the tax administrators of the States from where the deliveries or distributions both originated and concluded.