CFR > Title 27 - Alcohol, Tobacco Products and Firearms > CHAPTER I—ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY > SUBCHAPTER B—TOBACCO (parts 40 to 46) > PART 40—MANUFACTURE OF TOBACCO PRODUCTS, CIGARETTE PAPERS AND TUBES, AND PROCESSED TOBACCO > SUBPART H—Operations by Manufacturers of Tobacco Products (§40.161 to §40.257) > 40.256—Minimum manufacturing and activity requirements.

40.256—Minimum manufacturing and activity requirements.

The minimum manufacturing and activity requirement prescribed in § 40.61(b) of this part is a continuing condition of a manufacturer's permit, that is, a permit to manufacture tobacco products is conditioned upon a person's principal business activity being the manufacture of tobacco products. A permit may be suspended, and subsequently revoked, if the person's principal business activity under such permit is to receive or transfer tobacco products in bond, or if the person has no activity under such permit for a period of one year. As a minimum activity requirement, the quantity of tobacco products manufactured under the permit must be equivalent to, or exceed, the quantity transferred or received in bond under the permit.

Code of Federal Regulations

Effective Date Notes: 1. By T.D. TTB-78, at 74 FR 29410, June 22, 2009, § 40.256 was added, effective June 22, 2009 through June 22, 2012. 2. By T.D. TTB-80, at 74 FR 37552, July 29, 2009, § 40.256 was amended in the last sentence by removing the word “exceed” and adding in its place the words “be equivalent to, or exceed,”, effective July 29, 2009 through June 22, 2012.