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33572 Federal Register / Vol. 69, No.

115 / Wednesday, June 16, 2004 / Rules and Regulations

Special Analyses 1(e)(3)(ii) for obtaining the trade or business to which the section
It has been determined that this Commissioner’s consent to a change in 481(a) adjustment relates, or has
Treasury decision is not a significant accounting method (for example, see terminated its existence, is to be made
regulatory action as defined in Rev. Proc. 2002–9 (2002–1 C.B. 327) and under the principles of § 1.446–
Executive Order 12866. Therefore, a Rev. Proc. 97–27 (1997–1 C.B. 680) (also 1(e)(3)(ii) and its underlying
regulatory assessment is not required. It see § 601.601(d)(2) of this chapter)). administrative procedures.
also has been determined that section This paragraph applies to taxable years (ii) De minimis rule for a taxpayer
553(b) of the Administrative Procedure ending on or after June 16, 2004. other than a cooperative.
Act (5 U.S.C. chapter 5) does not apply * * * * * Notwithstanding paragraph (g)(2)(i) and
to these regulations, and because these ■ Par. 3. Section 1.448–1 is amended as (ii) of this section, a taxpayer other than
regulations do not impose a collection follows: a cooperative (within the meaning of
of information on small entities, the ■ 1. Paragraphs (g)(2)(i) and (g)(3)(i) are section 1381(a)) that is required to
Regulatory Flexibility Act (5 U.S.C. revised. change from the cash method by this
chapter 6) does not apply. Pursuant to ■ 2. Paragraphs (g)(3)(ii) and (g)(3)(iii) section may elect to use, in lieu of the
section 7805(f) of the Internal Revenue are removed. adjustment period described in
Code, the notice of proposed rulemaking ■ 3. Paragraph (g)(3)(iv) is redesignated paragraph (g)(2)(i) and (ii) of this
preceding these regulations was as paragraph (g)(3)(ii) and the section, the adjustment period for de
submitted to the Chief Counsel for introductory language is revised. minimis section 481(a) adjustments
■ 4. Paragraph (g)(6) is removed. provided in the applicable
Advocacy of the Small Business
■ 5. Paragraph (i)(1) is amended by administrative procedure issued under
Administration for comment on its
removing the language ‘‘and (4)’’ and § 1.446–1(e)(3)(ii) for obtaining the
impact on small business.
adding ‘‘(4), and (5)’’ in its place. Commissioner’s consent to a change in
Drafting Information ■ 6. Paragraph (i)(5) is added. accounting method. A taxpayer may
The principal authors of these The revisions and addition read as make an election under this paragraph
regulations are Christian Wood and follows: (g)(3)(ii) only if —
Grant Anderson of the Office of § 1.448–1 Limitation on the use of the cash * * * * *
Associate Chief Counsel (Income Tax receipts and disbursements method of (i) * * *
and Accounting). However, other accounting. (5) Effective date of paragraph
personnel from the IRS and Treasury * * * * * (g)(2)(i). Paragraph (g)(2)(i) of this
Department participated in their (g) * * * section applies to taxable years ending
development. (2) * * * on or after June 16, 2004.
List of Subjects in 26 CFR Part 1 (i) In general. Except as otherwise
Mark E. Matthews,
provided in paragraphs (g)(2)(ii) and
Income taxes, Reporting and (g)(3) of this section, a taxpayer required Deputy Commissioner for Services and
recordkeeping requirements. Enforcement.
by this section to change from the cash
method must take the net section 481(a) Approved: June 1, 2004.
Adoption of Amendments to the
Regulations adjustment into account over the section Gregory F. Jenner,
481(a) adjustment period as determined Acting Assistant Secretary of the Treasury
■ Accordingly, 26 CFR part 1 is amended under the applicable administrative (Tax Policy).
as follows: procedures issued under § 1.446– [FR Doc. 04–13585 Filed 6–15–04; 8:45 am]
1(e)(3)(ii) for obtaining the BILLING CODE 4830–01–P
Commissioner’s consent to a change in
■ Paragraph 1. The authority citation for accounting method (for example, see
part 1 continues to read, in part, as Rev. Proc. 2002–9 (2002–1 C.B. 327) and DEPARTMENT OF THE TREASURY
follows: Rev. Proc. 97–27 (1997–1 C.B. 680) (also
see § 601.601(d)(2) of this chapter)), Alcohol and Tobacco Tax and Trade
Authority: 26 U.S.C. 7805 * * *
provided the taxpayer complies with the Bureau
■ Par. 2. In § 1.263A–7, paragraph provisions of paragraph (h)(2) or (3) of
(b)(2)(ii) is revised to read as follows: this section for its first section 448 year. 27 CFR Parts 4, 5, and 7
§ 1.263A–7 Changing a method of * * * * * [T.D. TTB–12]
accounting under section 263A. (3) * * *
(i) Cessation of trade or business. If RIN 1513–AA93
* * * * *
(b) * * * the taxpayer ceases to engage in the
Removal of Requirement To Disclose
(2) * * * trade or business to which the section
Saccharin in the Labeling of Wine,
(ii) Adjustment required by section 481(a) adjustment relates, or if the
Distilled Spirits, and Malt Beverages
481(a). In the case of any taxpayer taxpayer operating the trade or business
required or permitted to change its terminates existence, and such cessation
method of accounting for any taxable or termination occurs prior to the AGENCY: Alcohol and Tobacco Tax and
year under section 263A and the expiration of the adjustment period Trade Bureau, Treasury.
regulations thereunder, the change will described in paragraph (g)(2)(i) or (ii) of ACTION: Final rule; Treasury decision.
be treated as initiated by the taxpayer this section, the taxpayer must take into
for purposes of the adjustment required account, in the taxable year of such SUMMARY: This document amends the
by section 481(a). The taxpayer must cessation or termination, the balance of Alcohol and Tobacco Tax and Trade
take the net section 481(a) adjustment the adjustment not previously taken into Bureau’s labeling regulations to remove
into account over the section 481(a) account in computing taxable income. the requirement for bottlers of wine,
adjustment period as determined under For purposes of this paragraph (g)(3)(i), distilled spirits, and malt beverages to
the applicable administrative the determination as to whether a show a warning on products containing
procedures issued under § 1.446– taxpayer has ceased to engage in the saccharin. The regulatory amendments

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Federal Register / Vol. 69, No. 115 / Wednesday, June 16, 2004 / Rules and Regulations 33573

in this document reflect the National Decision ATF–220 on December 20, Executive Order 12866
Toxicology Program’s revised findings 1985 at 50 FR 51851 (as corrected in 51 This final rule does not meet the
about saccharin and the removal of the FR 4338, published February 4, 1986). criteria for a ‘‘significant regulatory
statutory requirement for the warning. Treasury Decision ATF–220 amended action’’ as specified in Executive Order
DATES: This rule is effective on June 16, the regulations in 27 CFR parts 4, 5, and 12866. Accordingly, this final rule is not
2004. 7 to require bottlers of alcohol beverage subject to the analysis required by this
FOR FURTHER INFORMATION CONTACT: Lisa products containing saccharin Executive Order.
M. Gesser, Regulations and Procedures (including sodium saccharin, calcium
Division, Alcohol and Tobacco Tax and Regulatory Flexibility Act
saccharin and ammonium saccharin) to
Trade Bureau, P.O. Box 128, Morganza, label their products with a health The provisions of the Regulatory
Maryland 20660; (301–290–1460) or e- warning statement identical to that set Flexibility Act relating to an initial and
mail forth in the Saccharin Study and final regulatory flexibility analysis (5
SUPPLEMENTARY INFORMATION: Labeling Act. U.S.C. 603, 604) do not apply to this
Background On May 15, 2000, the U.S. final rule because no notice of proposed
Department of Health and Human rulemaking is required by 5 U.S.C.
The Federal Alcohol Administration 553(b).
Act, 27 U.S.C. 205(e)(2), authorizes the Services, Public Health Service,
Administrator of the Alcohol and National Toxicology Program published Paperwork Reduction Act
Tobacco Tax and Trade Bureau (TTB), the 9th Report on Carcinogens. The
The provisions of the Paperwork
as a delegate of the Secretary of the Report delisted saccharin, which had
Reduction Act of 1995 (44 U.S.C.
Treasury, to prescribe regulations which been listed in the Report as ‘‘reasonably
3507(j)) and its implementing
will provide the consumer with anticipated to be a human carcinogen’’
regulations, 5 CFR part 1320, do not
‘‘adequate information’’ as to the since 1981. The Report explained that
apply to this final rule because no
identity and quality of alcohol beverage saccharin was removed from the list
requirement to collect information is
products. Under this authority, parts 4, after a review of the carcinogenicity data
5, and 7 of title 27 of the Code of for saccharin. The Report concluded:
Federal Regulations (27 CFR 4, 5, and 7) Saccharin will be removed from the Report
Drafting Information
prescribe the labeling requirements for on Carcinogens, because the rodent cancer The principal author of this document
wines, distilled spirits, and malt data are not sufficient to meet the current is Lisa M. Gesser, Regulations and
beverages, respectively. Prior to January criteria to list this chemical as reasonably Procedures Division, Alcohol and
24, 2003, the Secretary of the Treasury anticipated to be a human carcinogen. This Tobacco Tax and Trade Bureau.
had delegated this responsibility to the is based on the perception that the observed
Administrator’s predecessor, the bladder tumors in rats arise by mechanisms List of Subjects
Director of the former Bureau of not relevant to humans, and the lack of data 27 CFR Part 4
Alcohol, Tobacco and Firearms, in humans suggesting a carcinogenic hazard.
Department of the Treasury (ATF- Advertising, Consumer protection,
Treasury). The regulations requiring Section 517, Title V, Appendix A, Customs duties and inspection, Imports,
basic mandatory labeling information Consolidated Appropriations Act of Labeling, Packaging and containers,
for alcohol beverage products have been 2001 (Pub. L. 106–554, 114 Stat. 2763), Reporting and recordkeeping
in effect for over 50 years. repealed 21 U.S.C. 343(o), the saccharin requirements, Trade practices, Wine.
On November 23, 1977, President warning statement requirement, as well 27 CFR Part 5
Carter signed into law the Saccharin as subsections (c) and (d) of section 4 of
Study and Labeling Act, Public Law 95– the Saccharin Study and Labeling Act. Advertising, Consumer protection,
203, 91 Stat. 1451. Section 4(a)(1) of the Accordingly, we are amending 27 CFR Customs duties and inspection, Imports,
Saccharin Study and Labeling Act parts 4, 5, and 7 by removing the Labeling, Liquors, Packaging and
added paragraph (o) to 21 U.S.C. 343, saccharin warning statement containers, Reporting and recordkeeping
requiring the following statement on the requirement for the labeling of wine, requirements, Trade practices.
labels of all food and beverage products distilled spirits, and malt beverages. 27 CFR Part 7
that contained saccharin: These regulatory changes are made
solely to reflect the statutory change Advertising, Beer, Consumer
Use of this product may be hazardous to protection, Customs duties and
your health. This product contains saccharin noted above, and are in no way
which has been determined to cause cancer intended to reflect or prejudice our inspection, Imports, and Labeling.
in laboratory animals. review of a recent petition we have Authority and Issuance
In 1984 and 1985, ATF-Treasury received, proposing a number of new
and broader labeling requirements. ■ For the reasons discussed in the
began receiving petitions from industry
preamble, TTB amends 27 CFR, chapter
members requesting to use saccharin as Inapplicability of Notice and Delayed I, parts 4, 5, and 7 as set forth below:
a sugar substitute in alcohol beverage Effective Date Requirements
manufacturing. The Food and Drug PART 4—LABELING AND
Administration regulations, 21 CFR Because the regulatory changes in this ADVERTISING OF WINE
180.37 (21 U.S.C. 348, 371), did not and document remove a requirement
still do not preclude the use of imposed by the Saccharin Study and ■ 1. The authority citation for part 4
saccharin in the production of alcohol Labeling Act, which was repealed, TTB continues to read as follows:
beverages. In recognition of the has determined it is impractical and Authority: 27 U.S.C. 205, unless otherwise
congressional mandate as expressed in unnecessary to issue these regulations noted.
the Saccharin Study and Labeling Act with prior public notice and comment
and pursuant to section 205(e)(2) of the procedures under 5 U.S.C. 553(b) or § 4.32 [Amended]
Federal Alcohol Administration Act, subject to the effective date limitation in ■ 2. Amend § 4.32 by removing and
ATF-Treasury published Treasury section 553(d). reserving paragraph (d).

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33574 Federal Register / Vol. 69, No. 115 / Wednesday, June 16, 2004 / Rules and Regulations

ADVERTISING OF DISTILLED SPIRITS you have any questions regarding this are applicable to those vessels identified
notice or the CSR contact Lieutenant in Chapter I of SOLAS, which defines
■ 3. The authority citation for part 5 Commander Kirsten R. Martin, cargo ships as ‘‘any ship which is not a
continues to read as follows: telephone (202) 267–0503, e-mail passenger ship’’ and specifically
Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. or Chief exempts ‘‘cargo ships of less than 500
205. Warrant Officer Jim Upthegrove, gross tonnage’’ and ‘‘ships not propelled
telephone (202) 267–0102, e-mail by mechanical means.’’ Some members
§ 5.32 [Amended], U.S. Coast of the maritime community have
■ 4. Amend § 5.32 by removing and Guard Office of Compliance (G–MOC– confused the requirements of the ISPS
reserving paragraph (b)(6). 1). If you have questions on viewing or Code with the requirements of the
submitting material to the docket, call Maritime Transportation Security Act of
PART 7—LABELING AND 2002 (MTSA). While the ISPS Code and
Andrea M. Jenkins, Program Manager,
ADVERTISING OF MALT BEVERAGES the MTSA closely parallel one another,
Docket Operations, telephone 202–366–
■ 5. The authority citation for part 7 0271. there are several instances where they
continues to read as follows: SUPPLEMENTARY INFORMATION: Privacy
diverge considerably. Among them are
Act: Anyone can search the electronic applicability, and the requirements for
Authority: 27 U.S.C. 205.
form of all comments received into any documents such as ISSC and CSR.
§ 7.22 [Amended] of our dockets by the name of the Barges or non self-propelled vessels are
■ 6. Amend § 7.22 by removing and individual submitting the comment (or not subject to SOLAS, and therefore do
reserving paragraph (b)(5). signing the comment, if submitted on not have to carry a CSR.
Signed: March 8, 2004. behalf of an association, business, labor Clarification
Arthur J. Libertucci, union, etc.). You may review the We received some requests from the
Department of Transportation’s Privacy public and industry to clarify certain
Act Statement in the Federal Register wording in the Notice of Availability
Approved: April 9, 2004.
published on April 11, 2000 (65 FR that was published in the Federal
Timothy E. Skud, 19477), or you may visit http://
Deputy Assistant Secretary (Tax, Trade, and
Register February 17, 2004 (69 FR 9206). The following clarifications are
Tariff Policy).
[FR Doc. 04–13404 Filed 6–15–04; 8:45 am] Public Comments provided to assist both the public and
pertinent implementation and
BILLING CODE 4810–31–P The Coast Guard received two general compliance agencies, including the
comments from the public. One Coast Guard.
commenter expressed concern with the ‘‘Gross Tonnage,’’ means the gross
DEPARTMENT OF HOMELAND short submission time for the tonnage measurement of the vessel
SECURITY application of the Continuous Synopsis under 46 U.S.C. chapter 143 Convention
Record. The Coast Guard recognizes the measurement (referring to International
Coast Guard difficult timelines for compliance with Convention on Tonnage Measurement of
the requirements for the International Ships, 1969, also known as ITC). This
33 CFR Parts 101 and 104 Ship and Port Facility Security (ISPS) parameter is also described as ‘‘GT’’ or
Code. The Coast Guard Marine Safety ‘‘GT ITC’’. It follows that any wording
Center has identified through all that refers to ‘‘tons’’ should be read as
Application for Continuous Synopsis practical means those vessels subject to ‘‘tonnage.’’ Also, in accordance with
Record (CSR) (Form CG–6309) International Convention for the Safety SOLAS definitions, the way to refer to
of Life at Sea, 1974 as amended a passenger vessel’s applicability
AGENCY: Coast Guard, DHS. (SOLAS) requiring International Ship requirement, shall read ‘‘more than 12
ACTION: Notice of Forms availability; Security Certificates (ISSCs) and passengers’’ instead of ‘‘12 or more
announcement of approval date and Continuous Synopsis Records (CSRs) to passengers.’’
clarification. be onboard prior to July 1, 2004. These Furthermore, some definitions were
vessels are receiving priority scheduling mentioned in the notice and were
SUMMARY: The Coast Guard announces at each step of the process. We have provided as a ready source of
the approval of the collection of instituted a concurrent issue process for information. The Coast Guard has found
information associated with the ISSCs and initial CSRs to enable Coast that they might be a potential source of
Application for a Continuous Synopsis Guard field units to deliver both confusion as it could be interpreted that
Record by the Office of Management documents upon satisfactory these definitions are new or revised
and Budget (OMB). The Coast Guard completion of the onboard verification definitions of existing terms. To clarify
also makes clarifications to the Notice of exam. Upon receipt of an approval letter this, the intent of this notice is to adhere
Availability of this application, for their vessel security plan, owners to the existing definitions as defined in
published in the Federal Register on and operators are strongly encouraged to the Maritime Transportation Security
February 27, 2004, and addresses the coordinate closely with their local Act of 2002 (MTSA) and SOLAS. These
comments received from the public. Officer in Charge, Marine Inspection definitions are already clearly defined
DATES: Form CG–6039, Application for (OCMI) and the Continuous Synopsis and are applicable for the CSR Notice of
Continuous Synopsis Record, was Record Desk (CSR Desk) without delay Availability.
approved on April 2, 2004 (OMB control to ensure timely onboard verification
number 1625–0002). Form CG–6038A, and document issuance. Collection of Information
Amendments to the CSR and Index of The other comment stated that there This notice calls for no new
Amendments to the CSR, was approved was possible confusion regarding what collections of information under the
on April 23, 2004 (OMB control number vessels are required to carry an ISSC Paperwork Reduction Act of 1995 (44
1625–0017). and a CSR. The requirements of the U.S.C. 3501–3520). The CSR notice

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