Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 64-28

1964-1 C.B. 594

IRS Headnote

A dealer in tobacco products (wholesale or retail) may not remove cigars, cigarettes, or manufactured tobacco from the required packages (as put up by the manufacturer or importer), for transmission by mail, express, or other similar method to prospective customers, either as free samples to solicit trade or for sale.

Revenue Ruling 56-667, C.B. 1956-2, 927, superseded.

Full Text

Rev. Rul. 64-28 /1/

Advice has been requested whether cigars may be removed from a taxpaid package by a dealer for delivery by mail to customers as free samples. Advice has also been requested whether sample packages may be made up of cigars from taxpaid packages of more than one manufacturer for sale through the mail to customers.

Under section 5751(a)(3) of the Internal Revenue Code of 1954 and section 296.166 of the Miscellaneous Regulations Relating to Tobacco Materials, Tobacco Products, and Cigarette Papers and Tubes, all tobacco products purchased, received, possessed, offered for sale, sold or otherwise disposed of, by a dealer (wholesale or retail) must be in proper packages (as put up by the manufacturer or importer) which bear the mark and notice as prescribed in section 270.211 through 270.215 of the Manufacture of Tobacco Products Regulations and sections 275.71 through 275.75 of the Regulations relating to the Importation of Tobacco Materials, Tobacco Products, and Cigarette Papers and Tubes. Tobacco products may be sold or offered for sale at retail from such packages, provided the products remain in the packages until removed by the customer or in the presence of the customer.

A dealer in tobacco products (wholesale or retail) may not remove such products from the required packages (as put up by the manufacturer or importer) for transmission by mail, express, or other similar method to prospective customers, either as free samples to solicit trade or for sale.

Revenue Ruling 56-667, C.B. 1956-2, 927, is hereby superseded.

/1/ Prepared pursuant to Revenue Procedure 62-24, C.B. 1962-2, 489.