SUPPLEMENTARY INFORMATION:

Background

On November 25, 2002, the President signed into law the Homeland Security Act of 2002, Pub. L. No. 107-296, 116 Stat. 2135 (2002). Under title XI, subtitle B, section 1111 of the Act, the “authorities, functions, personnel, and assets” of the Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury (the Bureau), are transferred to the Department of Justice, with the exception of certain enumerated authorities that are retained by the Department of the Treasury. The authorities retained by the Secretary of the Treasury include the administration and enforcement of chapters 51 and 52 of the Internal Revenue Code, sections 4181 and 4182 of the Internal Revenue Code, and title 27 of the United States Code.

Section 1111 of the Homeland Security Act further provides that the Bureau will retain its identity as a distinct entity within the Department of Justice known as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The functions retained by the Department of the Treasury are the responsibility of a new Alcohol and Tobacco Tax and Trade Bureau (TTB). The split of the Bureau's functions takes effect on January 24, 2003.

Reorganization of Title 27 CFR

Title 27, Code of Federal Regulations (27 CFR), currently contains one chapter titled “Chapter I—Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury.” Since the Act divides the Bureau into two separate bureaus, this final rule reorganizes 27 CFR into two chapters, one for each new agency. The current chapter I will be retitled “Chapter I—Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury.” Chapter I will retain all current alcohol and tobacco regulations (except those relating to contraband cigarettes), as well as those related to the Federal firearms and ammunition excise tax. The newly established chapter II will be titled “Chapter II—Alcohol, Tobacco, Firearms, and Explosives, Department of Justice.” Chapter II will initially contain the four existing 27 CFR parts concerning firearms and explosives that are being moved from chapter I and recodified in the new chapter. Chapter II will also contain the existing regulations concerning contraband cigarettes.

This final rule does not make any changes to the current requirements of the regulations in 27 CFR. It merely divides the Bureau's current regulations between the new TTB and ATF. In the near future, TTB and the Department of Justice will individually make the necessary technical corrections to their regulations required by the division of the Bureau into the two new bureaus. This may include changes to agency names and addresses, agency acronyms, Web site addresses, delegation order numbers, position titles, and cross references within the regulations.

As noted, this final rule removes four existing parts and one existing subpart in 27 CFR concerning firearms, ammunition, explosives, and contraband cigarettes from chapter I and recodifies them in the new chapter II. These are:

• Part 46, Subpart F—Distribution of Cigarettes, which becomes part 646;
• Part 47, Importation of Arms, Ammunition and Implements of War, which becomes part 447;
• Part 55, Commerce in Explosives, which becomes part 555;
• Part 178, Commerce in Firearms and Ammunition, which becomes part 478; and
• Part 179, Machine Guns, Destructive Devices, and Certain Other Firearms, which becomes part 479.

The following are derivation tables for each of these recodified parts:

( printed page 3745) ( printed page 3747)

Paperwork Reduction Act

The provisions of the Paperwork Reduction Act of 1995, Public Law 104-13, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR part 1320, do not apply to this final rule because there are no new or revised recordkeeping or reporting requirements.

Regulatory Flexibility Act

Because no notice of proposed rulemaking is required for this rule under the Administrative Procedure Act (5 U.S.C. 553), the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply.

Executive Order 12866

This final rule is not a significant regulatory action as defined in Executive Order 12866. Accordingly, this final rule is not subject to the analysis this Executive Order requires.

Administrative Procedure Act

Because this final rule merely makes technical amendments to improve the organization of the regulations, no notice of proposed rulemaking and public comment period is required under 5 U.S.C. 553(b)(B). Similarly, because this final rule makes no substantive changes and is merely a recodification of existing regulations, this final rule is not subject to the effective date limitation of 5 U.S.C. 553(d).

Drafting Information

The principal author of this document is Lisa M. Gesser, Regulations Division, Bureau of Alcohol, Tobacco and Firearms.

Administrative practice and procedure, Authority delegations, Cigars and cigarettes, Claims, Excise taxes, Packaging and containers, Penalties, Reporting and recordkeeping requirements, Seizures and forfeitures, Surety bonds, Tobacco.

Authority and Issuance

For the reasons discussed in the preamble, the Department of the Treasury and the Department of Justice amend title 27 of the Code of Federal Regulations as follows:

TITLE 27—ALCOHOL, TOBACCO PRODUCTS AND FIREARMS

CHAPTER I—ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY

1. Revise the title of 27 CFR chapter I to read as set forth above.

CHAPTER II—BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES, DEPARTMENT OF JUSTICE

Subchapter A [Reserved]

Subchapter B—Firearms and Ammunition

Subchapter C—Explosives

Subchapter D—Miscellaneous Regulations Relating To Alcohol and Tobacco

2. Amend title 27 CFR by establishing chapter II and its related subchapters to read as set forth above.

Chapter I, Subchapter C

3. Transfer 27 CFR part 47 from chapter I, subchapter C, to chapter II, subchapter B and redesignate as 27 CFR part 447.

Chapter II, Subchapter B

4. The authority citation for the newly redesignated 27 CFR part 447 continues to read as follows:

Authority: 22 U.S.C. 2778. ( printed page 3748)

5. Amend the newly redesignated part 447 as follows:

Chapter I, Subchapter C

6. Transfer 27 CFR part 55 from chapter I, subchapter C, to chapter II, subchapter C and redesignate as 27 CFR part 555.

Chapter II, Subchapter C

7. The authority citation for the newly redesignated 27 CFR part 555 continues to read as follows:

Authority: 18 U.S.C. 847.

8. Amend the newly redesignated part 555 as follows:

Chapter I, Subchapter M

9. Transfer 27 CFR part 178 from chapter I, subchapter M, to chapter II, subchapter B and redesignate as 27 CFR part 478.

Chapter II, Subchapter B

10. The authority citation for the newly redesignated 27 CFR part 478 continues to read as follows:

Authority: 5 U.S.C. 552(a); 18 U.S.C. 847, 921-930; 44 U.S.C. 3504(h).

11. Amend the newly redesignated part 478 as follows:

Chapter I, Subchapter M

12. Transfer 27 CFR part 179 from chapter I, subchapter M to chapter II, subchapter B and redesignate as 27 CFR part 479.

Chapter II, Subchapter B

13. The authority citation for the newly redesignated 27 CFR part 479 continues to read as follows:

Authority: 26 U.S.C. 7805.

14. Amend the newly redesignated part 479 as follows:

Chapter I, Subchapter B

15. Transfer 27 CFR part 46, subpart F (§§ 46.141-46.155), from chapter I, subchapter B, to 27 CFR, chapter II, subchapter D and redesignate as “Part 646—Contraband Cigarettes”.

Chapter II, Subchapter D

16. Add an authority citation for the newly redesignated 27 CFR part 646 to read as follows:

Authority: 18 U.S.C. 2341-2346, unless otherwise noted.

17. Amend the newly redesignated part 646 as follows: