---
kind: "section"
citation: "27 C.F.R. § 40.232"
title: "27"
number: "40.232"
heading: "Experimental purposes."
url: "https://uscodex.org/cfr/27/40.232"
---

# §40.232. Experimental purposes.


A manufacturer of tobacco products may use tobacco products for experimental purposes without determination and payment of tax as set forth in this section.

- (a) **What are experimental purposes?** Experimental purposes are operations or tests carried out under controlled conditions to discover an unknown scientific principle or fact, to gather or confirm data about a known scientific principle or fact, or to test manufacturing, packaging, or other such equipment. Examples of uses for experimental purposes are:
  - (1) Use by manufacturers to determine scientific facts relating to tobacco products, such as their chemical content;
  - (2) Use by producers of packaging machines to test the operation of such machines; and
  - (3) Use by laboratories, hospitals, medical centers, institutes, colleges, or universities, for scientific, technical, or medical research.
- (b) **What purposes are not experimental?** The uses of tobacco products outside the factory premises for advertising or consumer testing or as salespersons' or customers' samples are not experimental purposes.
- (c) **Use in factory.** A manufacturer of tobacco products may use tobacco products without determination and payment of tax for experimental purposes in a factory.
- (d) **Use outside factory.** A manufacturer may remove tobacco products in bond for experimental purposes outside a factory. When tobacco products are shipped for experimental purposes outside the factory, the proprietor of the factory remains liable for the taxes imposed by [26 U.S.C. 5701](/usc/26/5701.md) until the occurrence of one of the following events:
  - (1) The tobacco products are returned to the premises of the factory from which they were shipped; or
  - (2) **The tobacco products are destroyed during or after their use for experimental purposes.**
- (e) **Record of use.** In addition to the records prescribed by [§ 40.183](/cfr/27/40.183.md), a manufacturer who removes tobacco products in bond for experimental purposes outside a factory must prepare and maintain a record containing the following information:
  - (1) Name and address of the consignee;
  - (2) Kind and quantity of tobacco products removed;
  - (3) Description of packaging, if any, of the tobacco products removed;
  - (4) Description of how and when the consignee will use the tobacco products; and
  - (5) **Disposition of any remaining tobacco products after the consignee's use.**

## Notes

### Amendments

[T.D. ATF-478, 67 FR 19333, Apr. 19, 2002]

### Authority

Authority: 26 U.S.C. 448, 5701, 5703-5705, 5711-5713, 5721-5723, 5731-5734, 5741, 5751, 5753, 5761-5763, 6061, 6065, 6109, 6151, 6301, 6302, 6311, 6313, 6402, 6404, 6423, 6676, 6806, 7011, 7212, 7325, 7342, 7502, 7503, 7606, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

### Source

Source: 26 FR 8174, Aug. 31, 1961, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975; 54 FR 48839, Nov. 27, 1989, and further redesignated by T.D. ATF-460, 66 FR 39093, July 27, 2001.

### Amendments

[T.D. ATF-478, 67 FR 19333, Apr. 19, 2002]