§ 646.150 Retention of Retaining records.

  1. a.(a) General. Each distributor of cigarettes shall retain the records required by §§ 646.146 and 646.147 for three years following the close of the year in which the records are made. The distributor shall keep the required records on his business premises.

    Each distributor that distributes more than 10,000 cigarettes, or 500 single-unit consumer-sized cans or packages of smokeless tobacco in a single transaction must retain the records required by §§ 646.146 and 646.147 for five years following the close of the year in which the records are made. Such distributors must keep the required records on their business premises (or otherwise make the records available from the business premises) and may keep them in electronic form. If storing records electronically, the distributors must maintain an electronic record-keeping system, including stored information, on their business premises or remotely, using a server located within the United States or its territories, or, if using a host facility, the facility must have a business premises within the United States or its territories that is subject to U.S. legal process. The distributors must also ensure that ATF can access the electronic records on the premises by request.

  2. b.(b) Shorter retention periods. The appropriate ATF officer may, pursuant to an application submitted by a distributor, approve a shorter retention period where—

    1. 1.(1) The distributor requesting the shorter retention period is an agent of a tobacco products manufacturer;

    2. 2.(2) The tobacco products manufacturer will keep the required record for each disposition of more than 60,000 cigarettes from the agent's premises for the full retention period specified in paragraph (a) of this section; and

      2.(2)The tobacco products manufacturer will retain the required record for each disposition of more than 10,000 cigarettes, or 500 single-unit consumer-sized cans or packages of smokeless tobacco, from the agent’s premises for the full retention period specified in paragraph (a) of this section; and

    3. 3.(3) The approval of a shorter retention period will not unduly hinder the administration of enforcement of this subpart.

  3. c.(c) Application requirements. Each distributor proposing to employ a shorter retention period shall submit a written application, in duplicate, to the appropriate ATF officer. A distributor may not employ a shorter retention period until approval is received from the appropriate ATF officer. Each application should indicate the duration of the proposed retention period and should include the information required by paragraph (b) of this section.