.03 Wholesaler and Subwholesaler Record Requirements.

A. Each licensee shall:

(1) Take a monthly inventory at the beginning of business on the first day of each month or at the close of business on the last day of each month of all cigarettes on the premises. Any distributor who finds it impractical to take inventory on these dates shall notify the Comptroller of another specific date on which inventory will be taken. Inventories shall exclude cigarettes:

(a) In vending machines; and

(b) Transferred to retail stock on written memorandum.

(2) Obtain invoices covering all purchases of cigarettes whether tax stamped or unstamped.

(3) Maintain a daily receiving record of cigarettes which includes the following:

(a) Date;

(b) Invoice number;

(c) Quantity;

(d) Brand; and

(e) Supplier name.

(4) Prepare an invoice for every sale of cigarettes which includes:

(a) Name and address of the purchaser; and

(b) Amount of cigarettes purchased.

(5) Retain invoices covering all purchases of Maryland cigarette tax stamps.

(6) Maintain a daily record of tax stamps affixed to cigarettes.

(7) Maintain a record of names and addresses of all retailers to whom cigarettes are sold.

(8) Prepare credit memoranda with the date the following transactions were completed:

(a) Cigarettes returned by customers to wholesale stock; and

(b) Unstamped and tax stamped cigarettes returned to manufacturers.

(9) Prepare memoranda providing details of the exchange of fresh cigarettes for stale cigarettes for factory representatives indicating:

(a) The name and address of the factory representative; and

(b) The company represented.

B. A wholesaler who prepares a written memo when removing cigarettes from wholesale stock for retail sales is not required to prepare a retail invoice.