{"data":{"id":"us/27-cfr-40.11","jurisdiction":"us","citation":"27 CFR 40.11","heading":"Meaning of terms.","body":"When used in this part and in forms prescribed under this part, the following terms shall have the meanings given in this section, unless the context clearly indicates otherwise. Words in the plural form shall include the singular, and vice versa, and words indicating the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not listed which are in the same general class.\nAdministrator. The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.\nAppropriate TTB officer. An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.40, Delegation of the Administrator's Authorities in 27 CFR Part 40, Manufacture of Tobacco Products and Cigarette Papers and Tubes.\nBank. Any commercial bank.\nBanking day. Any day during which a bank is open to the public for carrying on substantially all its banking functions.\nCFR. The Code of Federal Regulations.\nChewing tobacco. Any leaf tobacco that is not intended to be smoked.\nCigar. Any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of paragraph (2) of the definition for cigarette).\nCigarette. (1) Any roll of tobacco wrapped in paper or in any substance not containing tobacco, and\n(2) Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1) of this definition.\nCigarette paper. Paper, or any other material except tobacco, prepared for use as a cigarette wrapper.\nCigarette tube. Cigarette paper made into a hollow cylinder for use in making cigarettes.\nCommercial bank. A bank, whether or not a member of the Federal Reserve System, which has access to the Federal Reserve Communications System (FRCS) or Fedwire. The “FRCS” or “Fedwire” is a communications network that allows Federal Reserve System member banks to effect a transfer of funds for their customers (or other commercial banks) to the Treasury Account at the Federal Reserve Bank in New York.\nDetermine. To establish enough information about taxable products at the time of removal to calculate the tax, specifically the quantity (pounds or number) and kind (for example, cigarettes, snuff, paper tubes). Where the tax rate depends on additional information (such as number of cigarette papers to a set before January 1, 2000 or sale price of large cigars), that information must also be established as part of tax determination.\nDirector of the service center. The Director, Internal Revenue Service Center, in any of the Internal Revenue regions.\nDistrict director. A district director of internal revenue.\nElectronic fund transfer or EFT. Any transfer of funds effected by a manufacturer's commercial bank, either directly or through a correspondent banking relationship, via the Federal Reserve Communications System (FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of New York.\nExport warehouse. A bonded internal revenue warehouse for the storage of tobacco products or cigarette papers or tubes or any processed tobacco, upon which the internal revenue tax has not been paid for subsequent shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States.\nExport warehouse proprietor. Any person who operates an export warehouse.\nFactory. The premises of a manufacturer of tobacco products or processed tobacco as described in his permit issued under 26 U.S.C. chapter 52, or the premises of a manufacturer of cigarette papers and tubes on which such business is conducted.\nFiscal year. The period which begins October 1 and ends on the following September 30.\nIn bond. The status of tobacco products and cigarette papers and tubes, which come within the coverage of a bond securing the payment of internal revenue taxes imposed by 26 U.S.C. 5701 or 7652, and in respect to which such taxes have not been determined as provided by regulations in this chapter, including (a) such articles in a factory, (b) such articles removed, transferred, or released, pursuant to 26 U.S.C. 5704, and with respect to which relief from the tax liability has not occurred, and (c) such articles on which the tax has been determined, or with respect to which relief from the tax liability has occurred, which have been returned to the coverage of a bond.\nLarge cigarettes. Cigarettes weighing more than three pounds per thousand.\nLarge cigars. Cigars weighing more than three pounds per thousand.\nManufacturer of cigarette papers and tubes. Any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for his own personal use or consumption.\nManufacturer of processed tobacco. Any person who processes any tobacco other than tobacco products.\nManufacturer of tobacco products. (1) Any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco, other than:\n(i) A person who produces tobacco products solely for that person's own consumption or use; or\n(ii) A proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse.\n(2) The term “Manufacturer of tobacco products” includes any person who for commercial purposes makes available for consumer use (including such consumer's personal consumption or use under paragraph (1)(i) of this definition) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer's personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal use quantities.\nPackage. The immediate container in which tobacco products, processed tobacco, or cigarette papers or tubes are put up by the manufacturer and offered for sale or delivery to the ultimate consumer. For purposes of this definition, a container of processed tobacco, the contents of which weigh 10 pounds or less (including any added non-tobacco ingredients or constituents), that is removed within the meaning of this part, for any purpose other than destruction, export, delivery as a sample to a manufacturer of processed tobacco or tobacco products for the purpose of soliciting orders of processed tobacco, or scientific testing or testing of equipment which results in the destruction of the processed tobacco or the return of the processed tobacco to the factory premises, is deemed to be a package offered for sale or delivery to the ultimate consumer. For appropriate tax rate, see § 40.25a.\nPackaging. When used in the context of an action, the act of placing processed tobacco or a tobacco product in a package.\nPermit number. The identifying number and/or letters that are assigned to a TTB permit by the appropriate TTB officer.\nPerson. An individual, partnership, association, company, corporation, estate, or trust.\nPipe tobacco. Any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe.\nProcessed tobacco. Processed tobacco is any tobacco that has undergone processing, but does not include tobacco products. For purposes of this definition, the processing of tobacco does not include the farming or growing of tobacco or the handling of tobacco solely for sale, shipment, or delivery to a manufacturer of tobacco products or processed tobacco, nor does the processing of tobacco include curing, baling, or packaging activities. For purposes of this definition, the processing of tobacco includes, but is not limited to, stemming (that is, removing the stem from the tobacco leaf), fermenting, threshing, cutting, or flavoring the tobacco, or otherwise combining the tobacco with non-tobacco ingredients.\nRemoval or remove. The removal of tobacco products or cigarette papers or tubes, or any processed tobacco from the factory or release from customs custody, including the smuggling of other unlawful importation of such articles into the United States.\nRoll-your-own tobacco. Any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes or cigars, or for use as wrappers of cigars or cigarettes.\nSale price. The price for which large cigars are sold by the U.S. manufacturer, determined in accordance with § 40.22 and used for computation of the tax.\nService center. An Internal Revenue Service Center in any of the Internal Revenue regions.\nService center director. A director of an internal revenue service center.\nSets. Any collection, grouping, or packaging of cigarette papers made up by any person for delivery to the consumer as a unit.\nSmall cigarettes. Cigarettes weighing not more than three pounds per thousand.\nSmall cigars. Cigars weighing not more than three pounds per thousand.\nSmokeless tobacco. Any snuff or chewing tobacco.\nSnuff. Any finely cut, ground, or powdered tobacco that is not intended to be smoked.\nSpecial tax. The special (occupational) tax on manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors, imposed by 26 U.S.C. 5731.\nThis chapter. Title 27, Code of Federal Regulations, chapter I (27 CFR chapter I).\nTobacco products. Cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.\nTreasury Account. The Department of the Treasury's General Account at the Federal Reserve Bank of New York.\nTTB. The Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury\nU.S.C. The United States Code.","path":["Title 27—Alcohol, Tobacco Products and Firearms","CHAPTER I—ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY","SUBCHAPTER B—TOBACCO","PART 40—MANUFACTURE OF TOBACCO PRODUCTS, CIGARETTE PAPERS AND TUBES, AND PROCESSED TOBACCO","Subpart B—Definitions"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-27.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:25:11Z","sha256":"0e7ff077ed2bd67da9b5b82ca4edd7043aee1a22be15b685e7a02db90c246892","source_id":"us-cfr","stale":true,"prev":"us/27-cfr-40.2","next":"us/27-cfr-40.21"},"notice":"GroundRules: Original legal text. Not legal advice."}