SECTION .0900 ‑ REPORTS AND RECORDS REQUIRED OF DISTRIBUTORS

17 NCAC 04C .0901         MONTHLY REPORT FOR RESIDENT DISTRIBUTORS

(a)  Resident distributors filing a report pursuant to G.S. 105-113.18(1) shall file Form B-A-5 and Form B-A-7.

(b)  Form B-A-5 requires the following:

(1)           the reporting period for the report;

(2)           information required by 17 NCAC 01C .0322(b);

(3)           the distributor's legal name and mailing address;

(4)           the trade name or doing-business-as name, if applicable;

(5)           if the distributor elects to designate a contact person, the identity of a contact person, including his or her legal name, phone number, and fax number;

(6)           the distributor's state of domicile;

(7)           designation of whether the form is an amended form;

(8)           an inventory of non-tax-paid cigarettes during the reporting period, designated by packs, including:

(A)          the beginning inventory of non-tax-paid cigarettes possessed by the distributor on the first day of the reporting period;

(B)          the number of non-tax-paid cigarettes sold to the distributor from a manufacturer, and the following information regarding these transactions to be included on Schedule C of the form:

(i)            the invoice date;

(ii)           the invoice number;

(iii)          the name and address of the person who sold the distributor cigarettes; and

(iv)          the amount of cigarettes sold to the distributor;

(C)          the number of non-tax-paid cigarettes sold to the federal government, and the following information regarding these transactions to be included on Schedule B of the form:

(i)            the date cigarettes were sold;

(ii)           the name and address of the agency or instrumentality to whom cigarettes were sold; and

(iii)          the amount of cigarettes sold;

(D)          the number of non-tax-paid cigarettes sold outside North Carolina, and the following information regarding these transactions to be included on Schedule I:

(i)            the date the cigarettes were shipped;

(ii)           the shipping method (such as distributor truck, common or contract carrier, parcel post, or customer truck);

(iii)          the name and address of the person to whom cigarettes were sold;

(iv)          the identification of cigarette brands from a nonparticipating manufacturer; and

(v)           the amount of cigarettes sold outside North Carolina;

(E)           the number of non-tax-paid cigarettes returned to a manufacturer;

(F)           other increases or decreases in non-tax paid inventory, with explanations provided with the form; and

(G)          the ending physical inventory of non-tax-paid cigarettes possessed by the distributor on the last day of the reporting period;

(9)           an inventory of tax-paid cigarettes during the reporting period, designated by packs, and the following information to be included on Schedule D:

(A)          the beginning inventory of tax-paid cigarettes possessed by the distributor on the first day of the reporting period;

(B)          tax-paid cigarettes purchased or received from other sources, and the following information regarding these transactions to be included on Schedule E:

(i)            the invoice date;

(ii)           the invoice number;

(iii)          the name and address of the person who sold the distributor cigarettes;

(iv)          the amount of cigarettes sold; and

(v)           copies of all invoices containing the information listed in Rule .0903(c) of this Subchapter;

(C)          non-tax-paid purchases that are paid with the submission of the form;

(D)          other increases or decreases in tax paid inventory, with explanations provided with the form;

(E)           the number of tax-paid cigarettes sold in North Carolina;

(F)           the number of tax-paid cigarettes returned to the manufacturer; and

(G)          the ending physical inventory of tax-paid cigarettes possessed by the distributor on the last day of the reporting period;

(10)         the excise tax due on non-tax-paid cigarettes;

(11)         the discount under G.S. 105-113.21(a1), if applicable;

(12)         penalty and interest due on non-tax paid cigarettes, if any, in accordance with G.S. 105-236 and G.S. 105-241.21;

(13)         total payment due; and

(14)         for the person authorized to legally bind the distributor, his or her:

(A)          signature;

(B)          job title;

(C)          date of signature; and

(D)          affirmation that the form is accurate and complete.

(c)  The distributor shall include a separate Schedule I for each state to which the distributor shipped cigarettes during the reporting period.

(d)  When cigarettes are returned to a manufacturer, the distributor shall include the following information on Schedule J:

(1)           the date the cigarettes were shipped;

(2)           the shipping method (such as distributor truck, common or contract carrier, parcel post, or customer truck);

(3)           the name and address of the manufacturer;

(4)           the identification of cigarette brands from nonparticipating manufacturers;

(5)           designating whether the cigarettes returned were non-tax paid cigarettes or tax-paid cigarettes; and

(6)           the total non-tax paid cigarettes and total tax-paid cigarettes returned to the manufacturer.

(e)  Form B-A-5 shall be filed each month even if no cigarettes were sold, shipped, delivered, or otherwise disposed of during the reporting period.

(f)  The Department may disallow any deduction for the distributor's failure to include information on a designated schedule.

(g)  Form B-A-7 requires the following:

(1)           the reporting period for the report;

(2)           information required by 17 NCAC 01C .0322(b);

(3)           the legal name and mailing address of the person filing the form;

(4)           the trade name or doing-business-as name, if applicable;

(5)           if the person filing the form elects to designate a contact person, the identity of a contact person, including his or her legal name, phone number, and fax number;

(6)           designation of whether the form is an amended form;

(7)           for all tax-paid products from nonparticipating manufacturers, the person filing the form shall include:

(A)          the brand name;

(B)          the number of tax-paid cigarettes, designated by packs;

(C)          the number of ounces of roll-your-own cigarette tobacco;

(D)          the name and address of the nonparticipating manufacturer;

(E)           the name and address of the person from whom the brand was purchased; and

(F)           the name and address of the first importer of foreign manufactured brands; and

(8)           for the person authorized to legally bind the person required to file the form, his or her:

(A)          signature;

(B)          job title;

(C)          date of signature; and

(D)          affirmation that the form is accurate and complete.

(h)  Form B-A-7 shall be filed each month even if no tobacco products from nonparticipating manufacturers were sold, shipped, delivered, or otherwise disposed of in this State for the reporting period.

(i)  Form B-A-7 shall be filed in duplicate.

History Note:        Authority G.S. 105-113.4G; 105‑113.18; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 1994;

Readopted Eff. January 1, 2021.